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 enhanced further bullish advancement towards 1.1290-1.1315 (the Highlighted-Zone) which failed to provide adequate bearish pressure.
This week, a bullish breakout attempt was executed above 1.1327 (the upper limit of the current demand zone). This enhanced a further bullish movement towards 1.1450 demonstrating a false bullish breakout above the upper limit of the depicted movement channel.
Today, significant bearish pressure was demonstrated around 1.1450. A quick decline took place towards 1.1350 (38.2% Fibonacci level).
The short-term outlook for the EUR/USD pair remains bearish. Any bullish pullback towards 1.1380 should be considered for another SELL entry.
A quick bearish breakout below 1.1290 is mandatory to pursue towards the next bearish targets around 1.1235 and 1.1180. Otherwise, the pair would become trapped within the current consolidation range (1.1300-1.1360).
The material has been provided by InstaForex Company - www.instaforex.com