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 pushing higher.
The daily chart shows a bullish breakout trial being expressed above 1.6800-1.6850. The bullish momentum should be apparent now to allow the bullish breakout to pursue towards further targets. Otherwise, failure may occur.
The nearest demand zone to meet the pair is located at 1.6820 It's the most recently established top and the upper limit of the consolidation zone. Bulls should be concentrated around this level to prevent further decline of the pair.
As long as the ascending bottom established at the uptrend around 1.6555 remaining intact, the market will keep up its bullish momentum.
The pair has been trending up within the depicted bullish channel for a couple of weeks now. Today, a bearish impulse was initiated off 1.6910.
The bearish momentum was contained above 1.6820 (the lower limit of the depicted channel).
A bullish impulse is now taking place to retest the low of yesterday's candlestick around 1.6870.
Bearish fixation below 1.6870 is necessary to maintain the bearish tendency of the market. Otherwise, bullish destination will be located at 1.6950 aiming for a new high.
The material has been provided by InstaForex Company - www.instaforex.com
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