Since December 30, the EURUSD pair has trended-down within the depicted bearish channel until few weeks ago, when a new low around 1.0790 was recently established where the EUR/USD pair looked OVERSOLD after such extensive bearish decline.
On February 20, recent signs of bullish recovery were demonstrated around 1.0790 leading to the recent steep bullish movement towards 1.1000, 1.1175, 1.1360 and finally 1.1480 where a (123) bearish reversal pattern was initiated around.
This turned the short-term technical outlook for the EURUSD pair into bearish when bearish persistence below the Keyzone of 1.1235 was maintained on a daily basis.
Moreover, the mentioned intermediate-term bearish Head & Shoulders pattern has achieved all of its projection target levels.
Earlier last week, the EURUSD pair has expressed significant bullish recovery around 1.1065
The recent bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.0980 and 1.1075 (Fibonacci Level 50%).
Key Supply-Levels in confluence with significant Fibonacci levels are located around 1.1075 (50% Fibonacci) and 1.1175 (61.8% Fibonacci) where bearish rejection was highly-expected.
Moreover, a Head & Shoulders reversal pattern is being demonstrated around current price levels, of which, the pattern neckline exists near the current supply level around 1.1075.
Trade recommendations :
Intraday traders can wait for another Intradaily bullish pullback towards the mentioned supply-level around 1.1000 and look for any bearish rejection signs as a valid SELL signal for a short-term trade.
S/L to be placed above 1.1090 while Initial T/P level to be located around 1.0860.