Since January 19th, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.
Short-term outlook turned to become bearish towards 1.1175 (a previous weekly bottom which has been holding prices above for some time.
On the period between May 17th and June 5th, a bearish breakdown below 1.1175 was temporarily achieved.
As expected, further bearish decline was expected towards 1.1115 where significant bullish recovery was demonstrated bringing the EUR/USD pair back above 1.1175 demonstrating a significant bullish breakout off the depicted bearish channel.
Although Temporary Bullish breakout above 1.1320 was initially demonstrated (suggesting a high probability bullish continuation pattern),
Recently, The EURUSD pair has failed to maintain bullish persistence above 1.1320 – 1.1290 (Neckline of the double-top pattern) followed by a quick breakdown below the next key-zone around 1.1235.
This triggered a deeper bearish pullback towards 1.1200-1.1175 where significant bullish price action was demonstrated.
Short-term outlook remains positive/bullish as long as bullish persistence above 1.1270 (Recent Demand-Zone) and 1.1235 (key-zone) is maintained on the H4 chart.
A valid BUY entry was recently suggested upon the bullish breakout above 1.1235. It’s already running in profits. SL should be raised to entry levels to offset the associated risk.
Trade recommendations :
For Intraday traders who missed the initial breakout, They should wait for another bullish breakout above 1.1320 as a BUY signal.
Initial Target levels to be located around 1.1390 and 1.1430.
Bearish decline below 1.1250 invalidates the current bullish scenario.
The material has been provided by InstaForex Company – www.instaforex.com