Since May 17, the previous downside movement within the depicted bearish channel came to a pause allowing the recent sideway consolidation range to be established between 1.2750 - 1.2550 with a prominent key-level around 1.2650.
On June 4, temporary bullish consolidations above 1.2650 were demonstrated for a few trading sessions.
However, the price level of 1.2750 (consolidation range upper limit) has prevented further bullish advancement.
Moreover, early signs of bearish rejection have been manifested (Head & Shoulders reversal pattern with neckline located around 1.2650).
A quick bearish pullback towards 1.2650 was expected shortly.
Bearish breakdown below 1.2650 (reversal pattern neckline) confirmed the reversal pattern with bearish projection target located at 1.2550 and 1.2510.
Short-term outlook remains under bearish pressure as long as the market keeps moving below 1.2650 (mid-range key-level and neckline of the reversal pattern).
In general, the recent Bearish breakdown below 1.2570 - 1.2550 (the lower limit of the depicted consolidation range) confirms a trend reversal into bearish on the intermediate term.
Immediate bearish decline was expected towards 1.2505 - 1.2490. Further bearish decline is expected to pursue towards 1.2444 (the lower limit of the current movement channel).
On the other hand, any bullish pullback towards 1.2550-1.2570 should be considered as a valid SELL signal for Intraday traders.
On the other hand, a bullish position can ONLY be considered if EARLY Bullish persistence above 1.2570 is re-achieved on the current H4 chart.
Trade Recommendations:
Intraday traders can have a valid SELL Entry anywhere around the lower limit of the broken consolidation range near (1.2550-1.2570).
T/P levels to be located around 1.2490 and 1.2440.
S/L should be placed above 1.2620.
