By breaking down price level of 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 which exposed the price level of 1.4750 (61.8% Fibonacci) on March 10.
Previously, a bullish pull-back was initiated off 1.4670 ( around 61.8% Fibonacci ). Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls failed to pursue the bullish breakout leading to failure of the bullish breakout attempt.
Since then, the pair has been moving downwards within the depicted RED channel as a part of the larger BLUE bearish channel as well.
Moreover, Intraday support zone around 1.4750-1.4660 failed to provide enough support for the pair. Instead, bearish breakdown took place pushing towards 1.4500.
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 should be watched for significant bullish price action as it paused the bearish momentum once before.
Bearish breakdown of 1.4560-1.4520 allows the bears to initiate a quick movement towards 1.4475 and probably 1.4420 where important weekly levels are located.
The material has been provided by InstaForex Company - www.instaforex.com
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