Bearish pressure was applied earlier around 1.2800-1.2840 where the depicted head and shoulders reversal pattern was established.
Daily fixation below 1.2490-1.2500 (the origшт of the previous bullish swing expressed one month ago) extended the bearish targets towards the price level of 1.2250.
Last week, after bears could fixate below 1.2360, the EUR/USD pair has shown bullish recovery again above it due to the lack of bearish pressure below 1.2255.
The price level of 1.2200-1.2250 remains under bearish pressure as long as the bearish spikes established at the price levels of 1.2500 and 1.2565 remain defended by bears.
Risky traders should note that bearish breakout below 1.2250 exposes a potential projection target located around the price level of 1.2100.
Until then, conservative traders should remain considering price zone of 1.2250-1.2220 as an important DEMAND zone for low-risk LONG entries (backside of the previous broken channel as well as the previous WEEKLY low).
The material has been provided by InstaForex Company – www.instaforex.com