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.
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 1.1235 (78.6% Fibonacci) then 1.1175 (100% Fibonacci level).
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.
On May 13, another bullish pullback was executed towards the mentioned price zone (1.1230-1.1250) where the current bearish movement was initiated.
On the other hand, the EURUSD pair has been trapped above the next key-zone (1.1175) until last Friday when a bearish breakout below 1.1175 was achieved.
Further bearish decline should be expected towards 1.1115 provided that the price level of 1.1190 remains defended by the EURUSD bears.
Trade recommendations :
Conservative traders who were advised to have a SELL entry around the supply zone (1.1235-1.1250) should lower their S/L towards 1.1190 to secure more profits.
Remaining Target level should be projected towards 1.1115.
The material has been provided by InstaForex Company - www.instaforex.com