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 recent bearish movement was demonstrated towards 1.1175 (channel's lower limit) where significant bullish recovery was demonstrated on March 7th.
Bullish persistence above 1.1270 (Fibonacci 38.2%) enhanced further bullish advancement towards 1.1290-1.1315 (the depicted supply zone) where bearish rejection was anticipated.
However, negative fundamental data from US could push the EUR/USD pair for a temporary bullish breakout above 1.1315 before evident bearish rejection was demonstrated around 1.1335 earlier Today.
This brought the EURUSD Pair again towards 1.1300 within the depicted supply zone.
Bearish breakout below the price level of 1.1270 (38.2% Fibonacci) will probably liberate a quick bearish retraction towards 1.1160 again where the lower limit of the movement channel shall be tested again.
On the other hand, another bullish breakout above 1.1330 will probably enhance further bullish movement towards 1.1370 and 1.1390.
Trade recommendations :
Risky traders should wait for a bearish H4. candlestick closure below 1.1275 as a valid SELL signal.
T/P levels to be located around 1.1234 and 1.1177. SL to be located above 1.1350
The material has been provided by InstaForex Company - www.instaforex.com