On March 20, the EURUSD pair has expressed remarkable bullish recovery around the newly-established bottom around 1.0650.
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 (Fibo Level 50%).
Shortly After, a bearish Head & Shoulders pattern was demonstrated around the price zone between (1.1075-1.1150).
That’s why, Further bearish decline was demonstrated towards 1.0800 where the nearest demand level to be considered was located near the backside of the broken channel (1.0800-1.0750).
Evident signs of Bullish rejection have been manifested around the price zone of (1.0800-1.0750) leading to the recent bullish spikes up to 1.0990.
On May 1, Lack of bullish momentum around 1.1000 lead to another bearish decline towards the depicted price zone around 1.0800.
However, the price zone of (1.0815 – 1.0775) has been standing as a prominent Demand Zone providing quite good bullish support for the pair so far.
Moreover, a recent ascending bottom has been established around 1.0870 which enhances the bullish side of the market in the short-term.
Short-term technical bullish outlook remains valid as long as bullish persistence is maintained above the recently-established ascending bottom around 1.0850-1.0870.
Currently, the recent bullish breakout above 1.1000 should be maintained to enhance further bullish advancement towards 1.1075 and 1.1175.
On the other hand, any bearish breakdown below 1.0930 should be marked as an early Exit signal for all short-term BUY trades.
Trade recommendations :
Intraday traders are advised to wait for bearish pullback towards 1.1000 as a valid BUY signal.
T/P levels to be located around 1.1075 then 1.1175 if sufficient bullish momentum is maintained while S/L to be located below 1.0900.