Recently, new descending highs were recently demonstrated around 1.3200 and 1.3080.
However, temporary signs of bullish rejection were manifested around 1.2980-1.3000 before obvious bearish breakdown could occur.
Intraday technical outlook was supposed to remain bearish as long as the pair maintained its movement below 1.3080 (the most recently-established descending high).
Bearish breakdown below 1.2980 enhanced further bearish decline towards 1.2890 where Intraday traders were advised to watch price action carefully (the lower limit of the movement channel while the pair is being oversold).
Since Monday, signs of bullish rejection have been expressed allowing the current bullish pullback to pursue towards 1.3000 which failed to offer any bearish resistance.
Instead, bullish breakout above 1.3000 is enabling further bullish advancement towards 1.3100 and probably 1.3200 where the upper limit of the channel comes to meet the pair.
This extensive bullish movement will probably occur provided that the current price level around 1.3080 gets breached to the upside soon enough.
Moreover, bullish persistence above 1.2980-1.3000 is needed to ensure further bullish advancement.
On the other hand, please note that any bearish decline towards the demand-level (the lower limit of the channel @ 1.2890) will probably fail to provide bullish support for the pair this time.
The material has been provided by InstaForex Company – www.instaforex.com