The daily chart shows multiple bearish rejections at the upper limit of the ongoing channel resulting in an atypical bearish head and shoulders pattern.
Despite Tuesday's bullish reversal towards 1.6460 intraday resistance, a bearish engulfing daily candlestick was expressed on Wednesday indicating the strength of this price level as resistance.
Yesterday's daily candlestick failed to close below 1.6333 showing prominent bullish rejection that's taking place today.
Yesterday's Daily fixation above 1.6330 allowed another bullish impulse to take place today probably targeting at 1.6460.
On the 4H chart, Lower highs are being established indicating bearish momentum. However, we can obviously see that the pair failed to achieve lower low below 1.6333 (previous low).
The technical outlook suggests taking a SELL entry at 1.6460 with careful watching of a possible 4H bullish breakout which invalidates this position.Daily closure above 1.6460 invalidates this SELL entry.
On the long-term, daily closure below 1.6333-1.6300 is a must to collect further bearish momentum to push towards 1.6230-1.6200.
The material has been provided by InstaForex Company - www.instaforex.com
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