On October 2, a bullish breakout above 1.0940 confirmed the depicted Inverted Head & Shoulders reversal Pattern which enabled further bullish advancement towards (1.1000 -1.1020)
This bullish movement has been maintained above the depicted bullish trend.
On October 7, temporary sideway consolidation range was demonstrated around the price zone of (1.1000 -1.1020) before further bullish movement was resumed towards 1.1175 where significant bearish rejection was originated.
The price zone around (1.1175 – 1.1190) stood as a significant SUPPLY-Zone that demonstrated bearish rejection for two consecutive times in a short-period.
Moreover, the short-term technical outlook has turned into bearish after breakdown below 1.1090 was achieved (the depicted uptrend line and 50% Fibonacci Retracement Level).
On the other hand, a long-term Double-Top pattern was demonstrated with neckline located around 1.1075-1.1090 which offered valid bearish positions upon last week’s retesting.
As anticipated, further bearish decline was executed towards 1.1025 and 1.0995 where temporary bullish rejection is being demonstrated.
Currently, signs of bullish recovery are manifested around 1.1000 with expected bullish target projected towards 1.1085.
Any bullish pullback towards 1.1065-1.1085 should be watched for early bearish rejection and another valid SELL entry.
On the other hand, earlier bearish breakout below 1.1000 will probably enable quick bearish decline towards 1.0945 where a prominent demand level was previously located.
Trade recommendations :
Conservative traders are advised to wait for bullish pullback towards Fibonacci Zone 61.8% – 50% (1.1065-1.1085) for a valid SELL entry.
Initial T/P levels to be projected towards 1.1045 and 1.1000, while S/L should be placed above 1.1115.
The material has been provided by InstaForex Company – www.instaforex.com
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