The previous episode of upside movement was expressed above the depicted uptrend line (in blue) towards 1.2250 then 1.2350 before the current downside reversal was initiated.
Bearish closure below the mentioned price zone around 1.2250 enabled a quick downside decline towards 1.2170 which corresponded to a previous congestion zone as well as a prominent key-zone.
Persistence below the price level of 1.2170 has turned the intermediate outlook for the pair into bearish and enhanced further downside decline towards 1.2080, 1.1990 and 1.1950.
However, Recent Buying Pressure existed around 1.1950, leading to the current quick upside spike above 1.1990 again.
Buying pressure was applied on the pair. That's why, the RECENT upside movement extended towards the resistance level around 1.2175 which failed to offer sufficient downside pressure on the pair.
Hence, another upside movement was expressed towards 1.2250 where significant SELLING Pressure was found.
Conservative traders were advised to look for a valid SELL Position anywhere around the Resistance Level of (1.2250). It's already running in profits.
Stop Loss should be lowered to 1.2175 to secure some profits, while next T/P levels to be located around 1.2050 and 1.1990.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.