The previous episode of upside movement was expressed above the depicted uptrend line (in blue) towards 1.2250 then 1.2350 before the current downside reversal was initiated.
Bearish closure below the mentioned price zone around 1.2250 enabled a quick downside decline towards 1.2170 which corresponded to a previous congestion zone as well as a prominent key-zone.
Persistence below the price level of 1.2170 has turned the intermediate outlook for the pair into bearish and enhanced further downside decline towards 1.2080, 1.1990 and 1.1950.
However, Recent Buying Pressure existed around 1.1950, leading to the current quick upside spike above 1.1990 again.
Further buying pressure was applied on the pair. That's why, the current upside movement extended towards the depicted resistance level near 1.2175 which is failing to offer sufficient downside pressure on the pair.
Hence, more upside movement is being expressed towards 1.2250 where another Resistance Level -to be watched for price action- is located.
Trade Recommendations:
Conservative traders were advised to look for a valid SELL Position anywhere around the next Resistance Level (1.2250).
Stop Loss should be placed above 1.2290, while T/P levels to be located around 1.2175, 1.2050 and 1.1990.
