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Few weeks ago, the EURUSD pair has expressed significant bullish recovery around the newly-established bottom around 1.0650.
Bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.0980 and 1.1075 (Fibonacci Level 50%).
Key Supply-Levels in confluence with significant Fibonacci levels are located around 1.1075 (50% Fibonacci) and 1.1175 (61.8% Fibonacci) where bearish rejection was highly-expected upon the previous bullish pullback that took place on March 27.
Thus, a bearish Head & Shoulders pattern was demonstrated around the price levels of (1.1000 – 1.1150).
Further bearish decline was demonstrated towards 1.0800 where the nearest demand level to be considered was located near the backside of the broken channel (1.0800-1.0750).
Evident signs of Bullish rejection have been manifested around the price zone of (1.0800-1.0750) leading to the recent bullish spike up to 1.0990.
The short-term technical bullish outlook remains valid as long as bullish persistence is maintained above the recently-established ascending Bottom around 1.0770.
Further bullish advancement was expected to pursue beyond 1.1000 towards 1.1175 where 61.8% Fibonacci Level is located.
Bullish breakout above 1.1000 was needed to enhance further bullish movement towards 1.1075 and probably 1.1150.
However, lack of bullish momentum brought another recent bearish decline towards the depicted price zone around 1.0800.
On the other hand, the price zone of (1.0815 – 1.0775) still stands as a prominent Demand Zone which can provide quite good bullish support for the pair.
However, Any bearish breakdown below 1.0770 should be marked as an Exit signal for all short-term BUY trades.
Trade recommendations :
Intraday traders are advised to consider the current bearish pullback towards the price zone of 1.0815 – 1.0775 as another valid short-term BUY trade.
S/L should be placed at 1.0750 while T/P levels to be located around 1.0930, 1.1000 then 1.1075 if sufficient bullish momentum is maintained.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Mohamed Samy,
InstaForex Group © 2007-2020
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