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Recently, failing to apply sufficient bearish pressure around 1.2000, has allowed more bullish movement to pursue towards higher price levels ( 1.2100 - 1.2150 ) where bearish rejection was previously anticipated.
Although transient bullish breakout above this level was temporarily expressed, significant bearish momentum has emerged bringing the EURUSD pair back below 1.2050.
As the price levels were quite overpriced recently, bearish persistence below the current price zone of 1.2050-1.2000 was needed to establish a short-term downtrend.
Hence, more bearish decline was expected towards 1.1970 which is providing quite significant bullish rejection so far.
As depicted on the chart, Bearish breakout below 1.1970 will be needed to enable more bearish decline initially towards 1.1925.
Otherwise, the EUUSD remains trapped between the depicted price levels of 1.2050 to the upside and 1.1970 to the downside, until breakout occurs n either directions.
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