Since June 2018, the EUR/USD pair has been moving sideways with a slight bearish tendency. Narrow sideway consolidations have been 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.
Bullish fixation above 1.1420 was needed to enhance a further bullish movement towards 1.1520. However, the market has demonstrated significant bearish rejection around 1.1420 few times so far.
Last week, a recent attempt of a bullish breakout above 1.1520 (the upper limit of the depicted movement channel) was executed. However, significant signs of bearish rejection were expressed below 1.1520 and 1.1420 on the daily charts.
This renders the recent bullish breakout above 1.1420 and 1.1520 as a false breakout. Hence, any bullish pullback towards 1.1420 can be considered as a valid SELL entry for intraday traders.
The current decline below the key-level of 1.1400 encourages more sideway consolidations that may extend down to 1.1250 again where bullish rejection can be anticipated for a valid BUY entry.
On the other hand, in case a successful bullish breakout above 1.1420 is achieved again, this enhances a further bullish advance towards 1.1520, 1.1600 (October's High).
The material has been provided by InstaForex Company - www.instaforex.com