Since December 30, the EURUSD pair has trended-down within the depicted bearish channel until the depicted two successive Bottoms were established around 1.0790 then 1.0650 where the EUR/USD pair looked OVERSOLD after such extensive bearish decline.
Few weeks ago, the EURUSD pair has expressed significant bullish recovery around the newly-established bottom around 1.0650.
The following bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.0980 and 1.1075 (Fibonacci Level 50%).
Key Supply-Levels in confluence with significant Fibonacci levels are located around 1.1075 (50% Fibonacci) and 1.1175 (61.8% Fibonacci) where bearish rejection was highly-expected upon the latest bullish pullback that took place by the end of March.
That was when the depicted Head & Shoulders pattern was demonstrated around the price levels of (1.1000 - 1.1075).
Shortly after, further bearish decline was demonstrated towards 1.0800 where the nearest demand level to be considered was located near the backside of the broken channel (1.0800-1.0750).
Early signs of Bullish rejection have been manifested around the price zone of (1.0800-1.0750) leading to the current bullish spike up to 1.0950.
The short-term technical bullish outlook remains valid as long as bullish persistence is maintained above the recently-established ascending Bottom around 1.0830.
Further bullish advancement is expected to pursue towards 1.1000, 1.1075 then 1.1175 where 61.8% Fibonacci Level is located.
On the other hand, any bearish breakout below 1.0830 or 1.0770 (the recently established bottoms) invalidates the previously-mentioned bullish outlook.
Trade recommendations :
For those who caught the initial bullish trade just above 1.0800, Stop Loss should be elevated to 1.0870 to secure some profits.
Intraday traders can wait for bullish breakout above 1.1000 for another short-term BUY signal.
S/L to be placed below 1.0870 while Initial T/P levels to be located around 1.1075 and 1.1175.
