On the Daily chart, the pair has been moving sideways with slight bearish tendency. Recent bearish consolidations are maintained within the depicted daily movement channel.
On November 13, the EUR/USD pair demonstrated recent bullish recovery around 1.1220-1.1250 where the lower limit of the channel as well as the depicted demand zone came to meet the pair.
A quick bullish advance was demonstrated towards 1.1420. To be noted that prominent supply zone as well as the previous wave high are located around 1.1420-1.1520.
Bullish fixation above 1.1420 is needed to enhance further bullish movement towards 1.1520. However, the market has demonstrated significant bearish rejection around 1.1420 few times so far.
The EUR/USD pair remains under bearish pressure below 1.1420. Thus, the pair remains trapped between 1.1420 and 1.1270 until a breakout occurs in either direction.
Bullish fixation above 1.1420 enhances a further bullish advance towards 1.1520 and 1.1610.
On the other hand, if an early bearish breakout below 1.1270 is achieved on lower timeframes, a quick decline should be expected towards 1.1270 and 1.1170-1.1150.
The material has been provided by InstaForex Company - www.instaforex.com