On December 30, a bearish ABC reversal pattern was initiated around 1.1235 which turned the technical outlook into bearish.
Since then, the EURUSD pair has trended-down within the depicted bearish channel until few weeks ago, when extensive bearish decline established a new low around 1.0790 especially after Coronavirus news has delivered a bump to non-volatile Currency Markets.
This was where the EUR/USD pair looked OVERSOLD after such a sudden quick bearish decline.
Hence, Intraday traders were advised to look for signs of bullish recovery around the price levels of (1.0790).
On February 20, recent signs of bullish recovery were demonstrated around 1.0790 leading to the current steep bullish movement towards 1.1000, 1.1175 and 1.1235.
The Fed unexpectedly cut rates by half-point for the first time since 2008 to protect against an anticipated slowdown of economy for the fear of a possible Corona Virus outbreak.
This unexpected move made the G-7 currencies like the EURO more appealing than USD.
The price level of (1.1175) constituted a transient congestion-zone in confluence with the origin of the previously-mentioned ABC pattern.
Temporary bearish pullback was demonstrated towards 1.1100-1.1095 where another bullish swing was initiated targetting 1.1300, 1.1360 and 1.1480.
Recently, the price-Level of 1.1360 (100% Fibo Expansion) was being breached to the upside until earlier this week when bearish rejection was demonstrated around the price levels of 1.1480.
Remaining Bearish targets are projected towards 1.1300, 1.1235 and 1.1175. That's why, bearish persistence below 1.1360 is needed to ensure further bearish decline towards the mentioned target levels.
However, another Bullish breakout above 1.1360 (100% Fibo Expansion) enables another upward movement towards 1.1450-1.1480 where a high-probability double-top reversal pattern may be established.
