On Monday, EUR/USD took a pause at the key zone between 1.3100-1.3050, then the bears expressed bearish breakout below 1.3050 that opened a way for the pair to record a new low at 1.2984.
The nearest demand zone is located around 1.2970-1.2950, which corresponds to the uptrend line and the previous consolidation zone established in May.
Today, the EUR/USD pair is expressing quite strong bearish rejection off 1.3100 manifested in the ongoing daily candlestick. However, the pair remains bullish in the short-term as long as 1.2950 holds price above. The breakdown of 1.3000-1.2950 allows further bearish movement to take place towards 1.2750 initially.
This bullish recovery witnessed on Monday was subjected to bearish pressure from resistance 1.3150 (previous bottom and SMA 100 in the 4H chart) that pushed the pair further below 1.3050.
The pair is approaching but did not quite reach the depicted uptrend line which comes to meet the pair around 1.2960 roughly where price action should be watched for a possible reversal.
Bullish Recovery was expressed around 1.2985 yestrday. However, a pullback towards 1.2960 is expected where a buy entry may be taken with its first target located at 1.3050.
Trading recommendations:
Watch price action around 1.3000-1.2950 for a valid buy entry with SL located just below 1.2950, while the 1st target should be located at 1.3050, then 1.3140