Previously, around the price zone of 1.6780-1.6800, a Double Top pattern scenario was established during February and March. However, the recent lows at 1.6465 and 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 bullish breakouts 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 1.6775-1.6820. Bulls should be defending this price zone in order to pursue projection targets of the breakout.
As long as the ascending bottoms established at the uptrend around 1.6675, 1.6775 and 1.6825 remain intact, the market will keep its bullish momentum.
The pair has been trending up within the depicted bullish channel for a couple of weeks now. Last week, a bearish impulse was initiated off 1.6910 that led again towards the previous consolidation zone at the price level of 1.6820.
The bearish momentum was contained above 1.6820 (the lower limit of the depicted channel). The bulls have been failing to the record a higher high above the recent one at 1.6900. Instead, a minor lower low was established around 1.6875.
Bearish fixation below 1.6850 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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