Daily Outlook
In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.
The next daily supply level for the EUR/USD pair is located between 1.1400-1.1520 where the price action should be watched for possible bearish rejection.
Recently, the price levels around 1.1280-1.1295 stood as an Intraday resistance where recent bearish movement was initiated.
The bearish pullback could have extended towards 1.1110 and 1.1000 provided that the EUR/USD pair could maintain trading below 1.1170 (currently being breached).
Today, a bullish breakout above 1.1285 will be mandatory to pursue a further advance towards 1.1400.
H4 Outlook
On May 30, a significant bullish rejection was expressed around the price level of 1.1170 (lower Limit of the Wedge pattern in confluence with 61.8% Fibonacci Level ).
On June 14, a significant bearish rejection was expressed around the depicted supply level 1.1280-1.1295 (the upper limit of the Wedge pattern).
This was followed by a bearish breakdown of the lower limit of the Wedge pattern as well.
Note that re-closure above 1.1200 (lower limit of the Wedge pattern and 61.8% Fibonacci correction) brought bullish pressure into the market. This allowed a further bullish advance towards 1.1280.
A bullish breakout above 1.1280 will probably liberate a quick bullish movement towards 1.1400.
On the other hand, bearish persistence below 1.1170 (lower limit of the Wedge pattern and 61.8% Fibonacci correction) will be needed to enhance a further decline towards 1.1110, 1.1050 and 1.0950.
The material has been provided by InstaForex Company - www.instaforex.com