Few weeks ago, another episode of upside movement was expressed above the depicted uptrend line (in blue) towards 1.2250 then 1.2350 where a false breakout above the price level of 1.2200 was regarded as a bearish downside reversal signal.
Shortly after, a short-term reversal pattern has been demonstrated around these price levels. Intraday downside retracement to the downside was expected to occur.
However, the EUR/USD pair has failed to pursue towards lower price levels. Instead, the pair has spiked above the depicted Weekly HIGH around 1.2270 before the current bearish rejection was initiated around 1.2350.
Bearish closure below the mentioned price zone of 1.2250 – 1.2200 enabled a quick bearish decline towards 1.2170 which corresponded to a previous congestion zone as well as a prominent key-zone.
Persistence below the price level of 1.2170 has turned the intermediate outlook for the pair into bearish and enhanced further downside decline towards 1.2080 and just above few pips above 1.2040 as expected.
Recently, an atypical reversal Head & Shoulders Pattern was being depicted on the chart. Further confirmation needs more bearish persistence below 1.2170.
On the other hand, the recent upside pullback towards 1.2170 was suggested to be considered for SELLING the EURUSD pair again. It’s already running in profits. S/L should be lowered to 1.2110 to secure some profits.
Next projection target for the EURUSD pair would be located around 1.1990 where recent price action should be watched cautiously for either continuation towards 1.1910 or upside reversal towards 1.2070 and 1.2150.
The material has been provided by InstaForex Company – www.instaforex.com
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