Bullish movement above 1.3450 within the previous bullish channel allowed the pair to hit further supply levels around 1.3650 then 1.3750. This bullish momentum was taking place until obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904).
A breakdown of the depicted bullish channel took place shortly after (January 2). This led to the current bearish movement within the newly established bearish channel.
Within the depicted bearish channel, the bears managed to establish lower lows at 1.3550 then 1.3510.
Price Level of 1.3515 (lower limit of the bearish channel and previous low) has been rejecting the bears for three successive days enhanced by the presence of SMA-100 approximately at the same price zone.
The daily chart outlook remains negative probably targeting at 1.3460-1.3400 (prominent DEMAND levels on DAILY chart).
Indecision around 100-SMA (located at 1.3660) led to a bearish movement towards 1.3500.
The pair remains moving within the channel probably heading to test the lower limit at 1.3450 where bullish rejection is expected to be found.
We should note that 1.3515 is an important key-level on the intraday basis. It corresponds to previous price ranges that goes back to December 3.
The bears need to achieve 4H fixation below 1.3515-1.3500 to gather enough bearish momentum to push towards 1.3400. Otherwise, a bullish impulse towards 1.3600 wouldn't be excluded.
The material has been provided by InstaForex Company - www.instaforex.com
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