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In July, the EURUSD pair has failed to maintain bearish momentum strong enough to move below 1.1200 (consolidation range lower zone).
Instead, bullish breakout was achieved above 1.1380-1.1400.This has lead to a quick bullish spike directly towards 1.1750 which failed to offer sufficient bearish pressure as well.
Bullish persistence above 1.1700 – 1.1760 favored further bullish advancement towards 1.1975 – 1.2000 ( the upper limit of the technical channel ) which constituted a Solid SUPPLY-Zone offering bearish pressure.
Moreover, Intraday traders should have noticed the recent bearish closure below 1.1700. This indicates bearish domination on the short-term.
However, the EURUSD pair has failed to maintain sufficient bearish momentum below 1.1625 (38% Fibonacci Level). Instead, another bullish breakout was being demonstrated towards 1.1870 which corresponds to 76% Fibonacci Level.
As mentioned in previous articles, the price zone of 1.1870-1.1900 stood as a solid SUPPLY Zone corresponding to the backside of the broken channel.
Moreover, the recent bearish H4 candlestick closure below 1.1770 was mentioned in previous articles to indicate a valid short-term SELL Signal with bearish targets already achieved at 1.1700 and 1.1630.
The current bullish pullback towards the price zone of 1.1870-1.1900 should also be considered for signs of bearish rejection and another valid SELL Entry. S/L should be placed just above 1.1810.
*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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