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 a temporary intraday demand zone offering bullish support until it got broken to the downside ( On Friday ).
Bearish re-closure below 1.2100 then 1.2050 allowed more bearish domination. That's why, Next bearish targets were located around 1.1980-1.1970 which are failing to offer sufficient bullish support.
On the other hand, conservative traders should be waiting for bullish pullback towards 1.2050 for considerable bearish rejection and a valid SELL Entry.
The material has been provided by InstaForex Company - www.instaforex.com