On November 13, the EUR/USDpair demonstrated recent bullish recovery around 1.1220-1.1250 where the current bullish movement above the depicted short-term bullish channel (In BLUE) was initiated.
Bullish fixation above 1.1430 was needed to enhance further bullish movement towards 1.1520. However, the market has been demonstrating obvious bearish rejection around 1.1430 few times so far.
The EUR/USD pair has lost its bullish momentum since January 31 when a bearish engulfing candlestick was demonstrated around 1.1514 where another descending high was established then.
This allowed the current bearish movement to occur towards 1.1300-1.1270 where the lower limit of the depicted DAILY channel came to meet the pair.
Last week, significant bullish recovery has emerged on Tuesday. However, By the end of last week's consolidations on Thursday, the pair has failed to fixate above 1.1400 with early signs of bearish rejection.
This allowed the current bearish movement to occur towards 1.1175. Moreover, a bearish flag pattern remains valid if the current bearish persistence below 1.1250 is maintained on daily basis. Pattern target is projected towards 1.1000.
The material has been provided by InstaForex Company - www.instaforex.com