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 (Bullish Triple-Bottom pattern).
Bullish persistence above 1.1115 was needed to confirm the short-term trend reversal into bullish.
However, the depicted 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 thus rendering the short-term outlook as bearish.
Two weeks ago, a quick bearish decline was demonstrated towards 1.0965 – 1.0950 where the backside of the broken channel came to meet the EURUSD pair again.
Risky traders were advised to look for a valid BUY entry anywhere around the price levels of 1.0950. All T/p levels were successfully reached within the recent bullish movement during last week’s consolidations.
Yesterday, the EUR/USD pair was testing the backside of both broken trends around 1.1060-1.1080 where early signs of bearish rejection were demonstrated as expected in previous articles.
Bearish Breakdown below the Previous Weekly Bottom (1.0940) is mandatory to enhance further bearish decline towards 1.0900 and 1.0840 (Fibonacci Expansion Key-Levels).
Trade recommendations :
Conservative traders were advised to have a valid SELL entry around the price levels of (1.1050-1.1070). It’s already running in profits.
S/L should be lowered to 1.1090 while remaining target levels should be located at 1.0965, 1.0935 and 1.0900.