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.
Any bearish pull-back towards 1.6660 -1.6675 should be considered for buying as long as 1.6555 (most recent bottom) remains defended by the bulls.
The 4H chart reveals more significance of the demand zone around the recently broken top mentioned above in the daily chart.
It also corresponds to 50% and 61.8% Fibonacci levels which is a critical demand zone for the ongoing bullish swing.
The price zone of 1.6645 - 1.6680 may offer a valid BUY entry on the next bearish pull-back.
Stop loss should be located below 1.6560.
The material has been provided by InstaForex Company - www.instaforex.com
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