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 where the EUR/USD pair looked OVERSOLD after such a sudden quick bearish decline.
On February 20, recent signs of bullish recovery were demonstrated around 1.0790 leading to the recent steep bullish movement towards 1.1000, 1.1175.
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 limb was quickly expressed targetting 1.1235, 1.1270, 1.1360 and recently 1.1480.
Recently, the price-Levels of 1.1235 (KeyZone) and 1.1360 (100% Fibo Expansion) were being breached to the upside until earlier this week when a (123) bearish reversal pattern was initiated around the price level of 1.1480.
This turns the short-term technical outlook for the EURUSD pair into bearish as long as bearish persistence below Keyzone of 1.1235 is maintained on a daily basis.
Any bullish pullback towards 1.1235 should be considered for bearish rejection and a valid SELL entry.
Bearish persistence below 1.1100 is needed to pursue towards lower target levels. Estimated bearish targets are projected towards 1.1100, 1.1080 and 1.1035.
