On September 5, the EUR/USD pair was testing the backside of both broken trends around 1.1060-1.1080 where significant bearish pressure was demonstrated pushing the pair directly towards 1.0940 (Prominent Weekly Bottom).
Bearish Breakout below the price level of 1.0940 was needed to enhance further bearish decline towards 1.0900 and 1.0840 (Fibonacci Expansion Key-Levels).
However, considerable bullish rejection was demonstrated as a quick bullish spike towards 1.1100 where another episode of bearish pressure was expressed.
Shortly-After, TWO DESCENDING-Tops were established around 1.1080 and 1.1050.
This rendered the recent bullish spike as a bullish trap. Since then, the EURUSD has been trending-down within the depicted short-term bearish channel.
On September 23, a recent bullish pullback towards the price level of 1.1020 was obviously rejected by the end of Tuesday’s consolidations.
Bearish persistence below 1.0965 (recent daily bottom) enhanced more bearish decline towards 1.0930 and 1.0890 (Fibonacci Expansion 161.8%) where recent signs of bullish recovery is being demonstrated
Moreover, the EUR/USD is demonstrating a long-term Head & Shoulders continuation pattern extending between (1.0930 – 1.1080) with neckline located around 1.0940.
As long as bearish persistence below 1.0940 (Neckline) is maintained, Pattern projection target would remain projected towards 1.0840.
Trade recommendations :
Conservative traders should look for a valid SELL entry anywhere around the price zone of 1.0940-1.0960 (upper limit of the depicted movement channel).
Initial Target levels should be located at 1.0900, 1.0850 and 1.0840.