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.
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