The EURUSD pair has failed to maintain enough bearish momentum below 1.1150 (consolidation range lower zone) to enhance further bearish decline.
Instead, bullish breakout above 1.1380-1.1400 has lead to a quick bullish spike directly towards 1.1750 which failed to offer sufficient bearish pressure.
Bullish persistence above 1.1700-1.1760 favored further bullish advancement towards 1.1975 where some considerable bearish rejection has been demonstrated.
The price zone around 1.1975-1.2000 ( upper limit of the technical channel ) constituted a SOLID SUPPLY-Zone which offered bearish pressure.
Intraday traders should have noticed the recent bearish closure below 1.1700 — 1.1750 as an indicator for a possible bearish reversal.
As expected in previous articles, the price zone of 1.1850 — 1.1870 stood as a solid SUPPLY Zone providing significant bearish pressure as well as a valid SELL Entry.
Further bearish decline should be expected towards the next Fibonacci Level at1.1625 where price action should be watched again for a possible bearish continuation below it.
The material has been provided by InstaForex Company — www.instaforex.com