Back in June 24, the EURUSD looked overbought around 1.1400 facing a confluence of supply levels which generated significant bearish pressure over the pair.
Shortly after, In the period between 8 - 22 July, a sideway consolidation-range was established between 1.1200 - 1.1275 until a triple-top reversal pattern was demonstrated around the upper limit.
Then, Evident bearish momentum (bearish engulfing H4 candlestick) could bring the EURUSD below 1.1175.
This facilitated further bearish decline towards 1.1115 (Previous Weekly Low) then 1.1025 (the lower limit of the depicted recent bearish channel) where significant signs of bullish recovery were demonstrated.
Shortly-After in Mid-August, the EUR/USD has been trapped between 1.1235-1.1175 for a few trading sessions until bearish breakout below 1.1175 occurred on August 14.
Bearish breakout below 1.1175 promoted further bearish decline towards 1.1075 where the backside of the broken bearish channel has provided temporary bullish demand for sometime (Bullish Triple-Bottom pattern).
Bullish persistence above 1.1115 was needed to confirm the short-term trend reversal into bullish.
However, the depicted Triple-Bottom pattern was invalidated especially after the EURUSD pair bulls have failed to establish Bullish persistence above 1.1115.
Moreover, the recently established short-term uptrend line has been invalidated as well. This turned the short-term outlook as bearish.
By the end of last week's consolidations, a quick bearish decline was demonstrated towards 1.0980-1.0965 where the backside of the broken channel comes to meet the EURUSD pair again.
Trade recommendations :
Risky traders are advised to look for a valid BUY entry anywhere around the current price levels down to 1.0950. T/p levels to be located around 1.1015 and 1.1050.
Conservative traders should wait for bullish pullback towards 1.1050-1.1070 for a valid SELL entry. S/L should be placed just above 1.1095 while target levels can be determined later based on theupcoming price action.
