Since November 14, the price levels around 1.1000 has been standing as a significant DEMAND-Level which has been offering adequate bullish SUPPORT for the pair on two successive occasions.
Shortly-after, the EUR/USD pair has been trapped within a narrower consolidation range between the price levels of 1.1000 and 1.1085-1.1100 (where a cluster of supply levels and a Triple-Top pattern were located) until December 11.
On December 11, another bullish swing was initiated around 1.1040 allowing recent bullish breakout above 1.1110 to pursue towards 1.1175 within the depicted newly-established bullish channel.
Initial Intraday bearish rejection was expected around the price levels of (1.1175).
Quick bearish decline was demonstrated towards 1.1115 (Intraday Key-level) which got broken to the downside as well.
On December 20, bearish breakout of the depicted short-term channel was executed. Thus, further bearish decline was demonstrated towards 1.1065 where significant bullish recovery has originated.
The current bullish pullback towards 1.1235 (Previous Key-zone) should be watched for bearish rejection and another valid SELL entry.
On the other hand, bullish persistence above the price zone of 1.1175 favors the bullish side of the market. That’s why, bearish breakout below 1.1175 is mandatory to allow next bearish target to be reached around 1.1120.
Trade recommendations :
Conservative traders should wait for evident bearish rejection signs around the price levels of (1.1235) as a valid SELL signal. Bearish projection target to be located around 1.1175 and 1.1120.
Any Bullish breakout above 1.1250 invalidates the mentioned bearish scenario