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 significant bearish rejection was demonstrated on April 15.
Short-term outlook turned to become bearish towards 1.1280 (61.8% Fibonacci) then 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 on April 23.
Currently, the price zone around 1.1235 has turned into supply-zone to be watched for bearish rejection.
Yesterday, a recent bullish head and shoulders pattern was being demonstrated around 1.1140 on the H4 chart.
That's why, conservative traders were suggested to wait for another bullish pullback towards 1.1230-1.1250 for a valid SELL entry.
Trade recommendations :
Conservative traders can have a valid SELL entry anywhere around 1.1230-1.1250.
S/L should be located above 1.1270.
Target levels to be located around 1.1170 and 1.1130.
The material has been provided by InstaForex Company - www.instaforex.com