The pair has established recent resistance zone between 1.6765 and 1.6815 during February and March. These levels correspond to the previous tops in a successful Double Top pattern.
The depicted BLUE uptrend line remains intact since it was established in November 2013. However, this time the bulls are failing to maintain higher prices above 1.6800-1.6840.
Successive ascending bottoms were established around 1.5850, 1.6250, and 1.6460, and recently another ascending bottom around 1.6735 was established.
As long as the recent bottom around 1.6735 remains defended by the bulls. The market will keep developing bullish pressure to push above 1.6840. Otherwise, the bears will push strongly to the downside to keep moving within the depicted 4H channel especially after no significant bullish pressure was expressed upon the recent bullish breakout on the 4H chart.
Four-Hour closure below 1.6800 will gather enough bearish momentum to push lower.
On the other hand, bullish breakout above 1.6840 will expose 1.6900 and 1.6940 respectively.
The material has been provided by InstaForex Company - www.instaforex.com
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