Back in June 24, the EURUSD looked overbought around 1.1400 facing a confluence of supply levels.
Thus, a bearish movement was initiated towards 1.1275 followed by a deeper bearish decline towards 1.1235 (the lower limit of the newly-established bullish channel) which failed to provide enough bullish support for the EUR/USD.
In the period between 8 - 22 July, sideway consolidation range was established between 1.1200 - 1.1275 until a double-top reversal pattern was demonstrated around the upper limit.
Recent Bearish breakdown of the pattern neckline confirmed the short-term trend reversal into bearish towards 1.1175.
Fortunately, evident bearish momentum (bearish engulfing H4 candlestick) could bring the EURUSD back below 1.1235 which stands as an Intraday Supply zone to be watched for Intraday SELL entries upon any upcoming bullish pullback.
HOWEVER, Early bearish breakdown below 1.1175 facilitated further bearish decline towards 1.1115 (Previous Weekly Low) where evident bullish rejection was recently demonstrated.
That's why, Intraday bullish pullback was demonstrated towards 1.1175-1.1200 where a valid SELL entry was suggested in the previous article. It's already running in profits.
Today, Bearish persistence below 1.1115 is mandatory to allow further bearish decline. Otherwise, the EUR/USD remains trapped between the depicted zones (1.1115-1.1175 until breakout occurs in either direction).
Trade recommendations :
For Intraday traders, a valid SELL entry was offered around 1.1175-1.1200.
Initial Target level to be located around 1.1115 while Stop Loss should be lowered to 1.1160 to offset the risk.
Intraday traders who missed the initial trade, another SELL entry can be taken upon bearish breakdown below 1.1115 with initial bearish target around 1.1075 & 1.1050.
