Relevance up to 06:00 2020-02-06 UTC–8
On December 30, a quick bullish spike towards 1.1235 (Previous Key-zone) was suggested to be watched for bearish rejection and a valid SELL entry.
A bearish ABC reversal pattern was demonstrated just before another bearish movement took place towards 1.1100 when the EURUSD pair has lost much of its bearish momentum.
That’s why, another bullish pullback was executed towards 1.1175 where the depicted key-zone as well as the recently-broken uptrend were located.
Evident signs of bearish rejection were demonstrated around 1.1175. That’s why, another bearish decline was executed towards 1.1100 then 1.1035 which failed to provide enough bullish SUPPORT for the EURUSD pair.
Further bearish decline took place towards 1.1000 where the pair looked quite oversold around the lower limit of the depicted bearish channel.
Hence, significant bullish rejection was able to push the pair back towards the nearest SUPPLY levels around 1.1080-1.1100 where a confluence of supply levels (including the upper limit of the channel) are located.
Since then, the pair has been trending within the depicted bearish channel.
Hence, further bearish decline should be expected towards 1.0995 and 1.0965 where Fibonacci Expansion levels and the lower limit of the channel are located.
Hence, intraday traders should be looking for signs of bullish recovery around these price levels (1.0960) as a valid intraday BUY signal.
Bearish closure below 1.1000 is needed first to enhance further bearish decline towards 1.0995 and 1.0960. Otherwise, the EURUSD pair remains trapped between 1.1000 and 1.1100.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Mohamed Samy,
InstaForex Group © 2007-2020
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