Since February 28, the EURUSD pair has been moving within the prvious downside channel with slight bearish tendency.

Short-term outlook turned to become bearish towards 1.1175 (a previous weekly bottom which has been holding prices above for some time.

On the highlighted period between (May 17th and June 5th), temporary bearish breakdown below 1.1175 was demonstrated on the chart.

This allowed further bearish decline to occur towards 1.1115 where significant bullish recovery brought the EUR/USD pair back above 1.1175 which stands as a prominent DEMAND level until now.

Initially, Temporary Bullish breakout above 1.1335 was demonstrated (suggesting a high probability bullish continuation pattern).

However, the EURUSD pair has failed to maintain that bullish persistence above 1.1320 and 1.1275 (the depicted price levels/zones). This was followed by a deeper bearish pullback towards 1.1175 where significant bullish price action was demonstrated on June 18.

The EURUSD looked overbought around 1.1400 facing a confluence of supply levels. Thus, a bearish pullback was initiated towards 1.1275 as expected in a previous article.

Further Bearish decline below 1.1275 enhanced a deeper bearish decline towards 1.1235 (the lower limit of the newly-established bullish channel) which is failing to provide enough bullish support for the EURUSD.

The current bearish breakdown below 1.1235 invites further bearish momentum to push towards 1.1175 where recent price action should be considered.

Trade recommendations :

For Intraday traders, a valid SELL entry was previously suggested at retesting of the broken key-zone around 1.1235.

Initial Target levels to be located around 1.1200 and 1.1175.

Bullish breakout above 1.1260 invalidates the mentioned SELL position.