Around the price zone of 1.6780-1.6800, a Double Top pattern scenario was previously established during February and March.
Daily fixation below 1.6600 (reversal pattern neckline) exposed price level 1.6530 (50% Fibonacci) then enabled the pair to hit the full projection target at 1.6464 (61.8% Fibonacci).
The recent lows at 1.6465 as well as 1.6555 (corresponding to the depicted uptrend line) prevented further bearish decline and provided enough buying pressure to keep fixing above 1.6630-1.6666 (corresponding to a prominent top established on January 24).
As long as the ascending bottom established at the uptrend around 1.6555 remains intact, the bulls will be consolidating around 1.6780-1.6800.
The nearest demand zone to meet the pair is located at 1.6660-1.6675. It's the most recent established top on the current bullish swing.
Lack of bearish follow up below 1.6600 resulted in a strong bullish reversal that allowed a breakthrough above 1.6535 to take place shortly after.
The ascending bottom established at 1.6500-1.6530 exposed price zone of 1.6645 - 1.6680 to be broken through quickly. There seems to be tendency to re-visit this key-zone.
The price level of 1.6645 - 1.6680 may offer a valid BUY entry on the next bearish pull-back. It corresponds to the recent broken top established on March 31.
Stop loss should be located below 1.6560.
The material has been provided by InstaForex Company - www.instaforex.com
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