Back in June 24, the EURUSD looked overbought around 1.1400 facing a confluence of supply levels which generated significant bearish pressure over the pair.
Shortly after, In the period between 8 – 22 July, a sideway consolidation-range was established between 1.1200 – 1.1275 until a triple-top reversal pattern was demonstrated around the upper limit.
Then, Evident bearish momentum (bearish engulfing H4 candlestick) could bring the EURUSD below 1.1175.
This facilitated further bearish decline towards 1.1115 (Previous Weekly Low) then 1.1025 (the lower limit of the depicted recent bearish channel) where significant signs of bullish recovery were demonstrated.
Risky traders were advised to look for bullish breakout above 1.1050 as a bullish signal for an Intraday BUY entry with bullish targets around (1.1115, 1.1175 and 1.1235). All of which were successfully reached.
Shortly-After in Mid-August, the EUR/USD has been trapped between 1.1235-1.1175 for a few trading sessions until bearish breakout below 1.1175 occurred on August 14.
Bearish breakout below 1.1175 promoted further bearish decline towards 1.1075 where the backside of the broken bearish channel has provided temporary bullish demand for sometime.
The Bullish Triple-Bottom pattern was invalidated especially after the EURUSD pair bulls have failed to establish Bullish persistence above 1.1115.
Moreover, the recently established short-term uptrend line has been invalidated as well. This turns the short-term outlook as bearish.
Intraday traders can wait for a quick bullish pullback towards 1.1070 for having a valid SELL entry.
On the other hand, any bullish breakout above 1.1115 renders the current situation as a bearish trap bringing back positivity into the market at least towards 1.1175.