On January 10th, the market initiated the depicted bearish channel around 1.1570.
Since then, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.
On March 7th, recent bearish movement was demonstrated towards 1.1175 (channel's lower limit) where significant bullish recovery was demonstrated.
On March 18, a significant bullish attempt was executed above 1.1380 (the upper limit of the Highlighted-channel) demonstrating a false/temporary bullish breakout.
On March 22, significant bearish pressure was demonstrated towards 1.1280 then 1.1220.
Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200. This enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where recent bearish rejection was being demonstrated.
Short-term outlook turned to become bearish towards 1.1280 (61.8% Fibonacci) followed by further bearish decline towards 1.1235 (78.6% Fibonacci).
For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed two days ago.
Conservative traders were advised to wait for a bullish pullback towards the newly-established supply zone around 1.1235 for a valid SELL entry.
On the long-term, bearish persistence below 1.1235 enhances further bearish decline towards 1.1170 then 1.1115 if enough bearish momentum is expressed.
Trade recommendations :
A valid SELL entry was suggested around 1.1235 upon Yesterday's bullish pullback.
TP levels to be located around 1.1170 and 1.1115. SL should lowered to 1.1197 to offset the associated risk.
The material has been provided by InstaForex Company - www.instaforex.com