In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.
The next daily supply level for the EUR/USD pair is located between 1.1400-1.1520 where price action should be watched for possible bearish rejection.
Recent Update: The price levels around 1.1280-1.1295 constituted Intraday resistance where the current bearish movement was initiated.
The current bearish pullback will probably extend towards 1.1110 and 1.1000 as long as the EUR/USD pair maintains trading below 1.1170.
On the other hand, a bullish breakout above 1.1285 will be mandatory to pursue further bullish advance towards 1.1400.
By the end of last week, significant bullish rejection was expressed around the price level of 1.1170 (Lower Limit of the wedge pattern in confluence with 61.8% Fibonacci Level).
As anticipated, significant bearish rejection was expressed around the depicted supply level 1.1280-1.1295 (The upper limit of the wedge pattern). This was followed by bearish breakdown of the lower limit of the wedge-pattern as well.
Today, bearish persistence below 1.1170 (lower limit of the wedge pattern and 61.8% Fibonacci level) will be needed to enhance further bearish decline towards 1.1110 and 1.1050.
A valid SELL entry can be considered around the price levels of 1.1170 (61.8% Fibonacci Level).
S/L should be placed above 1.1230 while T/P levels should be placed at 1.1100, 1.1050, and 1.0850.
The material has been provided by InstaForex Company – www.instaforex.com