Since December 30, the EURUSD pair has trended-down within the depicted bearish channel until the depicted two successive Bottoms were established around 1.0790 then 1.0650 where the EUR/USD pair looked OVERSOLD after such extensive bearish decline.
Few weeks ago, the EURUSD pair has expressed significant bullish recovery around the newly-established bottom around 1.0650.
The following bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.0980 and 1.1075 (Fibonacci Level 50%).
Key Supply-Levels in confluence with significant Fibonacci levels are located around 1.1075 (50% Fibonacci) and 1.1175 (61.8% Fibonacci) where bearish rejection was highly-expected upon the latest bullish pullback that took place by the end of March.
That was when the depicted Head & Shoulders pattern was demonstrated around the price levels of (1.1000 – 1.1075).
Shortly after, further bearish decline was demonstrated towards 1.0800 where the nearest demand level to be considered was located near the backside of the broken channel (1.0800-1.0750).
Early signs of Bullish rejection have been manifested around the price zone of (1.0800-1.0750) leading to the recent bullish spike up to 1.0990.
The short-term technical bullish outlook remains valid as long as bullish persistence is maintained above the recently-established ascending Bottom around 1.0830.
Upcoming bullish advancement is expected to pursue towards 1.1000, 1.1075 then 1.1175 where 61.8% Fibonacci Level is located.
Despite the current bearish decline, the price zone of (1.0815 – 1.0775) stands as a prominent Demand Zone to be watched for bullish support and probably a valid intraday BUY trade.
On the other hand, any bearish breakout below 1.0830 or 1.0770 (the recently established bottoms) invalidates the previously-mentioned bullish outlook.
Trade recommendations :
Intraday traders can wait for more bearish decline towards 1.0775 for a better short-term BUY trade with a lower risk.
S/L to be placed below 1.0740 while T/P levels to be located around 1.0850, 1.0900 and 1.1075.
The material has been provided by InstaForex Company – www.instaforex.com
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