Source: Forex Analysis
On January 10th, the market initiated the depicted bearish channel around 1.1570.
The bearish channel’s upper limit managed to push price towards 1.1290 then 1.1235 before the EUR/USD pair could come again to meet the channel’s upper limit around 1.1420.
Bullish fixation above 1.1430 was needed to enhance a further bullish movement towards 1.1520.
However, the market has been demonstrated obvious bearish rejection around 1.1430
That’s why, the recent bearish movement was demonstrated towards 1.1175 (channel’s lower limit) where significant bullish recovery was demonstrated on March 7th.
Bullish persistence above 1.1270 (Fibonacci 38.2%) enhanced a further bullish advance towards 1.1290-1.1315 (the depicted supply zone) where lack of significant bearish pressure was demonstrated.
Earlier this week, previous negative fundamental data from US could push the EUR/USD pair for a temporary bullish breakout above 1.1315 which was followed by a period of indecision/hesitation.
Today, another bullish breakout attempt is being executed above 1.1327 (61.8% Fibonacci level).
This probably enhance further bullish movement towards 1.1370 and 1.1390 where the upper limit of the depicted movement channel is located.
On the other hand, a bearish breakout below the price level of 1.1270 (38.2% Fibonacci) will probably liberate a quick retracement towards 1.1160 again where the lower limit of the movement channel can be tested again.
The material has been provided by InstaForex Company – www.instaforex.com