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 downside 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 was demonstrated towards 1.2080, 1.1990 and 1.1950.
However, Recent Buying Pressure existed around 1.1950, leading to the current quick upside spike above 1.1990 again.
This indicates lack of sufficient downside pressure for the pair. Hence, the current upside movement extended towards 1.2130 before considering to SELL the EURUSD pair again.
Conservative traders should be waiting for the current upside movement to pursue towards the depicted Fibonacci Levels around 1.2130-1.2150 for a valid SELL Entry.
S/L should be placed above 1.2170 while Initial T/P levels to be located around 1.1990 and 1.1950.
The material has been provided by InstaForex Company – www.instaforex.com
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