On March 24, by breaking down 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.
The bears managed to break down 1.4950 corresponding to 50% Fibonacci level once before (the nearest support level). This exposed the price level of 1.4750 (61.8% Fibonacci) on March 10.
Previously, a bullish pull-back was initiated off 1.4670. Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls fail to pursue the bullish breakout leading to failure of the bullish breakout attempt.
On the other hand, Intraday support level around 1.4850 failed to provide enough support for the pair. Instead, bearish breakdown took place pushing towards 1.4730 (61.8% Fibonacci level) which was broken down as well as depicted on the chart.
Overall, the daily chart suggested bearish tendency especially when the daily candlesticks maintained closures below 1.4700.
On the other hand, the price zone above 1.4570-1.4520 provided a strong support to pause the ongoing bearish momentum.
The pair returned to trade above 1.4740 (61.8% Fibonacci) which stands as a solid support now and probably aiming for levels around 1.4900 for retesting.
Price zone of 1.4870-1.4900 represents the backside of the successful wedge pattern.
Retesting of this price zone will probably offer a valid sell entry with SL located just above 1.4950.
The material has been provided by InstaForex Company - www.instaforex.com
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