Source: Forex Analysis
In April 2018, the EUR/USD pair outlook turned to become bearish when the pair pursued trading below the broken uptrend as well as the lower limit of the depicted consolidation range.
Shortly after, the price zone (1.1850-1.1750) offered temporary bullish rejection towards 1.1990. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1990.
This was followed by a bearish breakdown below the price zone of 1.1850-1.1750. This price zone has been standing as a significant Supply zone since June 2018.
On the other hand, the price zone of 1.1520-1.1420 was considered a prominent demand zone where a valid bullish BUY entry was offered during previous weeks’ consolidations.
Hence, the EUR/USD pair remains trapped inside a consolidation range between the depicted key-levels 1.1520 and 1.1800 until a breakout occurs in either direction.
Recent signs of bearish rejection around 1.1800 were already manifested on the chart. That’s why, further bearish movement towards was anticipated towards 1.1650 initially. Next bearish target would be located around 1.1520.
Please note that any bullish breakout above 1.1750 will probably enhance further bullish advancement initially towards 1.1850 (low probability).
The material has been provided by InstaForex Company – www.instaforex.com