Previously, around the price zone of 1.6780-1.6800, a Double Top pattern scenario was established during February and March.
The full projection target was hit at 1.6464 (61.8% Fibonacci) after the bears managed to fixate below 1.6600 (reversal pattern neckline).
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 at the recent highs around 1.6780-1.6800 as happening now.
The nearest demand zone to meet the pair is located at 1.6660-1.6675. It's the most recently established top on the current bullish swing.
A bearish pull-back towards 1.6660 -1.6675 was considered for buying. This position is running in profits now (+150 pips).
The 4H chart reveals more significance of the demand zone around the recently broken top mentioned above in the daily chart.
This demand zone corresponds to 50% and 61.8% Fibonacci levels which is a critical demand zone for the ongoing bullish swing which offered a valid BUY entry on the recent bearish pull-back as expected.
Failure to show enough bullish momentum above 1.6820 pushed the pair back towards 1.6670.
Today, Price action should be watched around 1.6770 for a possible bearish breakdown to confirm a deeper pull-back towards 1.6610 initially.
The material has been provided by InstaForex Company - www.instaforex.com
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