A breakout above the previous resistance level of 1.3450 allowed the bulls to push within the bullish channel to hit higher levels around 1.3650 then 1.3750.
Later on, obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904). Instead, breakdown of the depicted bullish channel took place on January 2.
This led to the recent bearish movement that almost reached 1.3520.
After few days of consolidation around SMA-100, bullish impulse was initiated at 1.3520. This led to a long full-bullish engulfing daily candlestick.
On Friday, the bulls pushed towards the price levels around 1.3737 where strong bearish rejection was expressed resulting in two successive shooting star Daily candlesticks.
As expected, this indicated a corrective bearish movement towards 1.3525-1.3550 (where the depicted uptrend line and SMA-100 come to meet the pair). This price zone is already being approached during today's consolidations.
Price Zone of 1.3525-1.3550 will probably provide a valid BUY entry with SL as daily closure below 1.3500.
Obvious bullish rejection took place off the level of 1.3520 which is an important key-level on an intraday basis (corresponding to previous price ranges established in December as well as the lower limit of the channel).
As expected, the pair remains moving within the depicted channel having a strong resistance located at the upper limit of the ongoing channel around 1.3700 (50% Fibonacci) then 1.3745 (61.8% Fibonacci Level).
Obvious bearish rejection was expressed at 1.3737 (few pips below 1.3745) resulting in 4H closure below 1.3700 (50% Fibonacci Level).
As expected, this applied further bearish pressure on the pair towards 1.3580 then 1.3530 which is being approached.
Fixation below the price level of 1.3630 (where SMA-100 comes to meet the pair) is mandatory to keep enough momentum to push towards 1.3500.
The material has been provided by InstaForex Company - www.instaforex.com
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