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 two successive bullish breakouts expressed above 1.6850 (the upper limit of a previous congestion zone), then above 1.6930 (the upper limit of the ongoing bullish channel). The bullish momentum should be apparent now to allow the bullish breakout to pursue towards further targets. Otherwise, breakout is probably going to fail.
Price levels around 1.6990 provided evident rejection. This paused the ongoing bullish momentum (Note Yesterday's daily candlestick).
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 bearish momentum was srong above 1.6820 (the lower limit of the bullish channel and upper limit of a previous consolidation zone).
The bulls managed to record a higher value above the recent one at 1.6900. However, this probably exhausted the bullish momentum of the market. A short-term pull-back is taking place now.
The material has been provided by InstaForex Company - www.instaforex.com
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