FX.co ★ August 31, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

On May 14, the EUR/USD has expressed evident signs of Bullish rejection as well as a recent ascending bottom around the price zone of (1.0815 - 1.0775).Thus, enhancing the bullish side of the market in the short-term.

Bullish breakout above 1.1000 has enhanced further bullish advancement towards 1.1150 then 1.1380 where another sideway consolidation range was established.

The EURUSD pair has failed to maintain enough bearish momentum below 1.1150 (consolidation range lower zone) to enhance further bearish decline.

Instead, the current bullish breakout above 1.1380-1.1400 has lead to a quick bullish spike directly towards 1.1700 (Fibonacci Expansion 150% level) which failed to offer sufficient bearish pressure.

Bullish persistence above 1.1700-1.1760 favored further bullish advancement towards 1.1975 (200% Fibo Expansion Level) where some considerable bearish rejection has been demonstrated.

The price zone around 1.1975-1.2000 ( upper limit of the technical channel ) remains a strong SUPPLY-Zone to be watched for bearish reversal.

However, Conservative traders should be waiting for bearish re-closure below 1.1700. As this indicates lack of bullish momentum and enhances further bearish decline initially towards 1.1600 and 1.1500.

Trade recommendations :

Conservative traders should wait for the current bullish movement to pause and get back below 1.1700 as an indicator for lack of bearish momentum for a valid SELL Entry.T/P levels to be located around 1.1600 and 1.1500 while S/L to be placed above 1.176 to minimize the associated risk.