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.
Shortly after, 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.
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.
By the end of last week, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200. This will probably enhance further bullish advancement towards 1.1300-1.1315 where a low-risk SELL entry can be offered.
For Intraday traders, the price zone around 1.1235 now stands as a significant demand-zone to be watched for BUY entries if any bearish pullback occurs.
Short-term outlook remains bullish towards 1.1300 unless bearish breakdown below 1.1250 is achieved on H4 chart.
Trade recommendations :
Conservative traders should wait for a bearish pullback towards 1.1235 for a valid BUY entry.
TP levels to be located around 1.1280, 1.1320. SL to be located below 1.1200.
The material has been provided by InstaForex Company - www.instaforex.com