The EUR/USD pair is demonstrating a strong bullish movement which was maintained within the depicted bullish channel. However, during the last week, the market witnessed some bearish retracement in reaction to the upper limit of its movement channel around the price level of 1.2580.
Last week the EUR/USD pair managed to breakdown the short term uptrend line depicted on the chart after finding resistance around the price level of 1.2570. However, the pair came back to retest the backside of the broken trendline few times as depicted on the chart.
The most significant Resistance level is located around 1.2580. This price level was tested last week expressing a bearish engulfing 4H candlestick which pushed the EUR/USD pair to the downside.That's why a low risk SELL entry was suggested and triggered yesterday with a tight SL located above 1.2630, Some profits should have been taken by now to avoid possible bullish reversal.
The lower limit of the movement channel as well as SMA 100 are located around 1.2430 where price action should be watched for a valid low risk BUY entry with SL located below 1.2370.