The EUR/USD pair remains trapped between the price levels of 1.2200 and 1.2500 until breakout occurs in either directions.
Daily persistence above 1.2470-1.2500 was needed to confirm a recent bullish flag continuation pattern with projected targets around the price level of 1.2750.
However, significant signs of bearish reversal were manifested around the price levels of 1.2400.This was manifested in the bearish engulfing daily candlestick of April 20.
The short-term outlook turns to become bearish as long as the EUR/USD pair keeps trading below the broken uptrend as well as the lower limit of the depicted consolidation range remains broken.
The depicted Multiple-Top pattern needs the current bearish breakdown of the level of 1.2200 to be maintained on a daily basis. Bearish Projection target would be located around 1.1990 then 1.1880.
Conservative traders should wait for a bullish pullback towards 1.2190-1.2200 for a valid low-risk SELL entry.
T/P levels should be located around 1.2070-1.1990 while S/L should be placed above 1.2250.
The material has been provided by InstaForex Company – www.instaforex.com