Recently, finding significant demand around 1.2000, has allowed another bullish movement to pursue towards higher price levels ( 1.2100 - 1.2130 ) where bearish rejection was previously anticipated.
Although transient bullish breakout above this zone was temporarily expressed, the pair has failed to maintain bullish movement above 1.2130.
Bearish persistence below the price zone of 1.2050-1.2000 was needed to establish a short-term downtrend.
However, the price zone around 1.1970 has provided significant bullish demand so far leading to the current bullish breakout above 1.2050 up to 1.2250.
Recently, Bullish trades were considered risky. That's why, we were waiting for signs of bearish rejection like what happened earlier last week.
On the other hand, the price zone of 1.2110-1.2130 stood as an intraday demand zone which offered bullish support until it got broken to the downside ( Earlier on Friday ).
Bearish re-closure below 1.2100 then 1.2050 is needed for more bearish domination. If so, Next bearish targets would be located around 1.2020 then 1.1990
The material has been provided by InstaForex Company - www.instaforex.com