Daily Outlook
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 price zone (1.1850-1.1750) failed to offer sufficient bullish demand when a descending high was established around the price level of 1.1980.
The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, significant bearish pressure is being applied since then.
As bearish momentum dominates, bearish persistence below 1.1700-1.1750 (zone of previous daily lows) was maintained to enhance further bearish decline towards 1.1520 and probably 1.1420.
The price zone (1.1520-1.1415) was considered a prominent Demand zone to be watched for bullish price action and valid BUY entries. Early signs of bullish rejection have already been expressed around 1.1500 (the upper limit of the depicted demand zone).
Hence, conservative traders are waiting for the current bullish pullback towards the price zone (1.1800-1.1850) for valid SELL entries if the current bullish pullback persists.
The material has been provided by InstaForex Company - www.instaforex.com