Since November 14, the price levels around 1.1000 has stood as a significant DEMAND-Level offering adequate bullish SUPPORT for the pair on two successive occasions.
During this Period, the EUR/USD pair has been trapped within a narrow consolidation range between the price levels of 1.1000 and 1.1085-1.1100 (where a cluster of supply levels and a Triple-Top pattern were located) until December 11.
On December 11, another bullish swing was initiated around 1.1040 allowing recent bullish breakout above 1.1110 to pursue towards 1.1175 within the depicted short-term bullish channel.
Initial Intraday bearish rejection was expected around the price levels of (1.1175).
Moreover, On December 20, bearish breakout of the depicted short-term channel was executed.
Thus, further bearish decline was demonstrated towards 1.1065 where significant bullish recovery has originated.
The recent bullish pullback towards 1.1235 (Previous Key-zone) was suggested to be watched for bearish rejection and another valid SELL entry.
Suggested bearish position has achieved its targets while approaching the price levels around 1.1110.
As expected, the Key-Level around 1.1110 has provided some bullish rejection.
That’s why, the previous bullish pullback was expected to pursue towards 1.1140 and 1.1175 where the depicted key-zone as well as the recently-broken uptrend are located.
Recent signs of bearish rejection are being demonstrated around 1.1175. That’s why further bearish decline is anticipated towards 1.1110.
For the bearish side of the market to dominate, bearish persistence below 1.1110 is needed to enable further bearish decline towards 1.1060 and probably 1.1040.
Trade recommendations :
Conservative traders should consider the current bullish pullback towards the price levels of (1.1175) as another valid SELL signal.
Bearish projection target to be located around 1.1120 and probably 1.1060. Any bullish breakout above 1.1190 invalidates the mentioned bearish trading scenario.
The material has been provided by InstaForex Company – www.instaforex.com