Since January 19th, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.
Short-term outlook turned to become bearish towards 1.1175 (a previous weekly bottom which has been holding prices above for some time.
On the period between May 17th and 20th, a bearish breakdown below 1.1175 was temporarily achieved.
As expected, further bearish decline was expected towards 1.1115 where significant bullish recovery was demonstrated bringing the EUR/USD pair back above 1.1175 demonstrating a significant bullish breakout off the depicted bearish channel.
Short-term outlook remains positive/bullish as long as bullish persistence above 1.1175 (Demand-Zone) is maintained on the H4 chart.
Although Temporary Bullish breakout above 1.1320 was initially demonstrated (suggesting a high probability bullish continuation pattern),
Recently, The EURUSD pair has failed to maintain bullish persistence above 1.1320 - 1.1290 (Neckline of the double-top pattern) followed by a quick breakdown below the next key-zone around 1.1235.
This triggered a deeper bearish pullback towards 1.1200-1.1175 where price action and possible bullish rejection may be demonstrated.
Trade recommendations :
Intraday traders should wait for a bullish breakout above 1.1235 as a valid BUY signal.
Initial Target levels to be located around 1.1320 and 1.1390.
Bearish breakdown below 1.1175 invalidates the current bullish scenario.
