On January 10th, the market initiated the depicted bearish channel around 1.1570.
The bearish channel's upper limit managed to push price towards 1.1290 then 1.1235 before the EUR/USD pair could come again to meet the channel's upper limit around 1.1420.
Bullish fixation above 1.1430 was needed to enhance further bullish movement towards 1.1520.
However, the market has been demonstrated obvious bearish rejection around 1.1430
That's why, the current bearish movement was demonstrated towards 1.1175 (channel's lower limit) where some limited bearish recovery was demonstrated on March 7th.
Bullish persistence above 1.1270 (Fibonacci 38.2%) is mandatory to enhance a further bullish advance towards 1.1300-1.1320 (the depicted supply zone) where bearish positions may be considered upon valid price action.
However, today's negative fundamental data from the US may push the EUR/USD pair for a bullish breakout above 1.1320 that leads directly towards 1.1370-1.1400 (next supply zone).
On the other hand, the earlier bearish breakout below the price level of 1.1235 (23.6% Fibonacci) will probably liberate a quick decline towards 1.1160 again.
The material has been provided by InstaForex Company - www.instaforex.com