Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.
This enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where significant bearish rejection was demonstrated on April 15.
Short-term outlook turned to become bearish towards 1.1280 (61.8% Fibonacci) then 1.1235 (78.6% Fibonacci).
For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed on April 23.
Currently, the price zone around 1.1235-1.1250 has turned into supply-zone to be watched for bearish rejection.
On April 24-26, another bullish head and shoulders pattern was being demonstrated around 1.1140 on the H4 chart.
Moreover, the market has failed to sustain bearish pressure below the price Level of 1.1175.
That's why, conservative traders were suggested to wait for another bullish pullback towards 1.1230-1.1250 where a valid SELL entry can be offered.
Trade recommendations :
Conservative traders can look for a valid SELL entry anywhere around the price level of 1.1235.
S/L should be placed around 1.1260.
Initial Target levels should be located around 1.1200, 1.1175 and 1.1140.
The material has been provided by InstaForex Company - www.instaforex.com