Around price zone of 1.6780-1.6800, a double-top pattern scenario was established with the neckline located around the price zone of 1.6620-1.6660.
Daily fixation below this price zone enabled the pair to reach 1.6464 (61.8% Fibonacci) as a projection target.
The recent low at 1.6465 then 1.6555 ( corresponding to the depicted uptrend line) prevented further bearish decline.
The bulls around this level applied bullish pressure strong enough to fixate 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 would be targeting at 1.6750-1.6780.
On the other hand, a slide below price zone of 1.6665-1.6650 applies bearish pressure on 1.6550 to pursue towards lower lows around 1.6465 and 1.6400.
As mentioned Yesterday, bullish support was offered at 1.6550 ( Friday's lowest price level ).
Moreover, there was lack of bearish follow up below 1.6600. As expected this resulted in a strong bullish reversal with breakthrough above 1.6535.
Four-hour fixation above 1.6500-1.6530 exposed price level of 1.6680 quickly and price level of 1.6785 to be hit soon.
The price level of 1.6500-1.6530 may offer a valid BUY entry on the next bearish pull-back. Stop loss should be daily closure below 1.6470.
The material has been provided by InstaForex Company - www.instaforex.com
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