Since January 19th, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.
Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200 allowing further bullish advancement to occur towards 1.1300-1.1315 (supply zone) where significant bearish rejection was demonstrated on April 15.
For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed on April 23.
Short-term outlook turned to become bearish towards 1.1175 (a previous weekly bottom which has been holding prices above for a while)
On May 17-20, a bearish breakdown below 1.1175 was temporarily achieved.
As expected, further bearish decline was expected towards 1.1115. This is where significant bullish recovery was demonstrated bringing the EURUSD pair back above 1.1175.
Recently, The EURUSD pair has been trapped between the highlighted price levels (1.1175-1.1235) until last week on Tuesday when another bearish breakdown was demonstrated below 1.1175.
This enhanced the bearish side of the market towards 1.1120 where the current bullish movement was initiated. Further bullish advancement is expected towards 1.1235 where price action should be watched cautiously.
Bullish breakout above 1.1234 is mandatory to enhance further bullish advancement towards 1.1290 and 1.1320.
Otherwise, the EURUSD pair would remain trapped between the same price levels (1.1175-1.1235).
