On January 10th, the market initiated the depicted bearish channel around 1.1570.
Since then, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.
On March 7th, recent bearish movement was demonstrated towards 1.1175 (channel’s lower limit) where significant bullish recovery was demonstrated.
Bullish persistence above 1.1270 enhanced further bullish advancement towards 1.1290-1.1315 (the Highlighted-Zone) which failed to provide adequate bearish pressure.
On March 18, a significant bullish attempt was executed above 1.1380 (the upper limit of the Highlighted-channel) demonstrating a false/temporary bullish breakout.
On March 22, significant bearish pressure was demonstrated towards 1.1280 then 1.1220.
Two weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.
As expected, this enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where recent bearish rejection was being demonstrated.
Short-term outlook turns to become bearish towards 1.1280 (61.8% Fibonacci) where price action should be watched cautiously.
For Intraday traders, the price zone around 1.1280 stands as a prominent demand area to be watched for a possible BUY entry if enough bullish rejection is expressed.
On the other hand, bearish breakdown below 1.1280 opens the way for further bearish decline towards 1.1250-1.1235.
The material has been provided by InstaForex Company – www.instaforex.com