In April 2018, the short-term outlook turned to become bearish when the EUR/USD pair maintained trading below the broken uptrend as well as the lower limit of the depicted consolidation range.
Bearish persistence below the price level of 1.2200 allowed further bearish decline towards the price levels of 1.1990 and 1.1880.
As mentioned, the price zone (1.1850-1.1750) offered temporary bullish rejection towards 1.1990 where a descending high was established.
The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, further bearish momentum was expressed in the market.
Currently, the price zone (1.1850-1.1750) is now considered a prominent Supply zone to be watched for bearish rejection and possible SELL entries. S/L should be placed above 1.1900.
That’s why the bearish persistence below 1.1700-1.1750 (zone of previous daily lows) is currently needed to enhance further bearish decline towards 1.1400 (the previously mentioned monthly key-level).
The material has been provided by InstaForex Company – www.instaforex.com