Bearish pressure was applied earlier around 1.2800-1.2840 where the depicted head and shoulders reversal pattern and the upper limit of the depicted bearish channel were established.
Recently, daily fixation below 1.2360 (the lower limit of the depicted broken congestion zone) extended the bearish targets towards the price level of 1.2250.
However, after bears could fixate below 1.2360, evident bullish recovery was expressed so that bulls could reach the price level of 1.2560 few days later.
This week, the price level of 1.2250 was subjected to extensive bearish pressure that originated off 1.2560 (the upper limit of the movement channel) leading to its breakdown that took place yesterday.
For intraday traders, the price level of 1.2150 remains a significant Fibonacci expansion level. Intraday DEMAND will probably be present at retesting.
Trade Recommendations :
As anticipated, risky traders could have benefited from the bearish breakout below 1.2250. This breakout exposes potential projection target roughly located around 1.2100.
Conservative traders should be looking for SHORT positions. Best low-risk entries may be taken around 1.2260 (the latest broken bottom).
The material has been provided by InstaForex Company - www.instaforex.com
