Source: Forex Analysis
Recent Descending-Tops were established around the price levels of 1.1060-1.1075 where the backside of both broken trends was retested.
This rendered the recent bullish spike above 1.1100 as a bullish trap.
Since then, the EURUSD has been trending-down within the depicted short-term bearish channel until recent signs of bullish recovery were demonstrated around 1.0880 (Inverted Head & Shoulders Pattern).
Shortly After, a bullish breakout above 1.0960 confirmed the mentioned reversal Pattern which opened the way for further bullish advancement towards (1.1000 -1.1020) where another episode of bearish rejection should be expected.
The intermediate-term outlook turned into bullish as long as the EURUSD pair pursues its current movement below 1.1030.
However, initial Intraday bearish pullback should be expected towards 1.0940-10915 where another bullish swing will probably be initiated.
On the other hand, If bullish persistence above 1.1030 (0% Fibonacci Expansion) is established earlier, the long-term projection target would be projected towards 1.1115 (Low Probability Scenario).
Trade recommendations :
Intraday traders were advised to consider the recent bullish breakout above 1.0960 as a valid BUY signal. Initial bullish target level was already reached around 1.1000.
Another Intraday BUY entry can be considered upon a bearish pullback towards 1.0915-1.0940 (Backside of the broken bearish channel).
T/P levels to be located at 1.0960, 1.1000 and 1.1029. S/L should be placed below 1.0870.
The material has been provided by InstaForex Company – www.instaforex.com