On September 20, Recent episode of bullish advancement was demonstrated towards 1.2550 where a short-term reversal channel was demonstrated.
As anticipated, the reversal pattern was confirmed to the downside on September 23 demonstrating a successful bearish closure below 1.2450.
On September 25, the depicted bullish channel was finally terminated with significant full-body bearish candlesticks which managed to achieve bearish closure below 1.2395.
Bearish persistence below 1.2400-1.2440 (Reversal-Pattern Neckline) allowed more bearish decline to occur towards the price levels of 1.2210 where a recent Double-Bottom reversal pattern was originated with neckline located around 1.2400.
Last week, the price zone of 1.2400-1.2415 (reversal pattern neckline) was breached to the upside allowing further bullish advancement to occur towards 1.2485, 1.2620 then 1.2680.
Bullish breakout above 1.2680 was needed to bring further bullish advancement towards 1.2840 (1.61% Fibonacci Expansion).
However, By the end of last week, signs of bearish rejection were demonstrated around 1.2680 (100% Fibonacci Expansion)
That's why, sideway consolidations may be demonstrated between 1.2680-1.2620 until breakout occurs in either directions (More probably to the downside).
Bearish closure below 1.2620 will probably bring further bearish decline towards 1.2470 and 1.2400 where bullish rejection and another long-term bullish swing should be expected.
Trade Recommendations:
Intraday traders are advised to wait for a bullish pullback towards 1.2680 for a valid SELL entry.
T/P levels to be placed around 1.2620, 1.2550 and 1.2470 while S/L should be placed above 1.2720.
