On September 5, the EUR/USD pair was testing the backside of both broken trends around 1.1060-1.1080 where significant bearish pressure was demonstrated pushing 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 pressure was expressed.
By the end of last week's consolidations, Bearish Breakout below 1.1030 was demonstrated. This renders the recent bullish spike as a bullish trap.
As Expected, the recent bullish pullback towards the price level of 1.1030 was obviously rejected by the end of Tuesday's consolidations.
Currently, the EUR/USD is demonstrating a long-term Double-TOP pattern extending between (1.0930 - 1.1080) with neckline located around 1.0940.
Bearish persistence below 1.0940 confirms this long-term pattern. Pattern projection target would be located around 1.0840.
In the short-term, Bearish persistence below the price level of 1.0970 (recent daily bottom) is mandatory to enhance more bearish decline towards 1.0930 and 1.0898 (Fibonacci Expansion 78.6%).
Trade recommendations :
Intraday traders who were advised to have a valid SELL entry around the price level of 1.1030 can gather their profits around the current price levels.
Conservative traders should wait for a considerable bearish closure below 1.0940 for a valid SELL entry. Initial Target levels should be located at 1.0900, 1.0850 and 1.0830.
