Few weeks ago, a quick bearish decline was demonstrated towards 1.0965 - 1.0950 where the backside of the broken channel came to meet the EURUSD pair again.
Intraday traders were advised to search for a valid BUY entry anywhere around the price levels of 1.0950. Target levels were successfully reached within the recent bullish movement during last weeks' consolidations.
Shortly After, the EUR/USD pair was testing the backside of both broken trends around 1.1060-1.1080 where significant bearish pressure pushed the pair directly towards 1.0940 (Prominent Weekly Bottom).
Bearish Breakout below the price level of 1.0940 was needed to enhance further bearish decline towards 1.0900 and 1.0840 (Fibonacci Expansion Key-Levels).
However, considerable bullish rejection was demonstrated as a quick bullish spike towards 1.1100 where another episode of bearish rejection was expressed.
Currently, the EUR/USD is trapped within a narrow consolidation range extending between (1.0990 - 1.1090) until breakout occurs in either directions.
By the end of last week's consolidations, Bearish Breakout below 1.1025 was demonstrated. This renders the recent bullish spike as a bullish trap.
That's why, initial bearish decline was expected towards 1.0940-1.0920 while the price levels around 1.1030 remain significant supply levels to be watched for bearish rejection.
Any bullish pullback towards the price level of 1.1030 should be considered as a valid SELL entry.
On the other hand, Bullish breakout above 1.1080 gives an early signal of short-term bullish reversal possibility as a bullish double-bottom pattern with a projected target towards 1.1175 (Low probability).
Trade recommendations :
Intraday traders are advised to wait for a continuation of the current bullish pullback towards the price level of 1.1030 for a valid SELL entry.
S/L should placed above 1.1090. Initial Target levels should be located at 1.0965 and 1.0930.
