The pair remains in the bearish impulse initiated off its peak price around 1.6820 as long as this highest price doesn't get broken through.
The breakdown of 1.6600 is essential to confirm reversal and trigger a stronger pullback, which will pause the short-term bullish momentum and open the way towards 1.6536 (50% Fibonacci Level of the swing between 1.6250/1.6821) and psychological Demand of 1.6500 as well.
The price level of 1.6600 seems to be a considerable support for the pair so far.
The bears failed to fixate below it on the last bearish attempt that took place two weeks ago. Instead, bullish pressure was applied to push again towards 1.6750 and 1.6800.
The bulls were concentrated around 1.6600 considering it as an ideal reversal point.
Stabilization of 1.6600 protected the pair from further decline. This led to a sideway consolidative phase before the ongoing bullish breakout took place last week.
As expected, breakthrough above 1.6666 opened the way towards 1.6740 corresponding to 61.8% Fibonacci of the recent bearish swing depicted on the 4H chart.
Breakthrough above 1.6740 is a must to bring bulls back to push towards 1.6820 again.
On the other hand, stabilization below which traps the pair between it and the backside of the broken channel around 1.6650 (Recent Demand Level) which may lead to a sideway consolidative phase until new fundamental data gets into the market.
The material has been provided by InstaForex Company - www.instaforex.com
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