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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 has provided quite significant bullish rejection so far.
Bearish breakout below 1.1970 was needed to enable more bearish decline initially towards 1.1925.
However, the EURUSD achieved a recent bullish breakout the upside in which the price level of 1.2155 is being reached now.
Currently, the pair looks quite oversold. That's why, we should be looking for signs of bearish rejection anywhere around 1.2200 as the current price levels aren't suitable for buying
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