Since June 2018, the EUR/USD pair has been moving sideways with slight bearish tendency. Narrow sideway consolidations have been maintained within the depicted Flag Channel (In red).
On November 13, the EUR/USD demonstrated recent bullish recovery around 1.1220-1.1250 where the current bullish movement above the depicted short-term uptrend (In blue) was initiated.
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.
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 bearish consolidations below the key-level of 1.1400 encourages a deeper decline down to 1.1250 as the initial target provided that the minor uptrend line located around 1.1350 gets broken to the downside early.
Trade Recommendations:
Conservative traders can wait for H4 bearish breakdown below 1.1350 (short-term uptrend in BLUE) as a valid SELL entry.
T/P levels to be located around 1.1310, 1.1270 and 1.1225. S/L to be located above 1.1420.
The material has been provided by InstaForex Company -
www.instaforex.com