Daily Outlook
The EUR/USD pair had been trapped between the price levels of 1.2200 and 1.2500 until bearish breakout occured recently.
Significant signs of bearish reversal were manifested around the price levels of 1.2400.This was manifested in the bearish engulfing daily candlestick of April 20.
The short-term outlook turns to become bearish as long as the EUR/USD pair keeps trading below the broken uptrend as well as the lower limit of the depicted consolidation range remains broken.
Bearish persistence below the price level of 1.2200 allowed further bearish decline towards the price levels of 1.1990 and 1.1880.
The current price zone (1.1850-1.1750) should be watched for a possible bullish rejection and a short-term bullish pullback.
Conservative traders should wait for a bullish pullback towards 1.2190-1.2200 for a valid low-risk SELL entry.
However, if bearish momentum dominates, bearish persistence below 1.1700-1.1750 (zone of previous daily lows) will be needed to enhance a further decline towards 1.1400 (the previously mentioned monthly key-level).
The material has been provided by InstaForex Company - www.instaforex.com