On February 5, temporary bullish breakout above 1.5220 (previous consolidation range) took place. Shortly after an ascending bottom was established around 1.5170-1.5200, indicating bullish sentiment on the market.
Projection target for this bullish breakout has already been reached around 1.5550 where the previous daily bottoms were located (daily resistance).
Two weeks ago, the bearish breakdown of a lower limit of the depicted channel occurred, enhancing the bearish side of the market and confirming the Flag pattern as a bearish one.
Significant bearish pressure was applied over the price level of 1.5200 (R2) then 1.4950 (R1=breached weekly support).
Bearish persistence below 1.4950-1.5000 indicated a further bearish decline. Initial projection target for this bearish breakout was located at 1.4700.
Yesterday, bullish recovery existed after retesting of 1.4700 despite the ongoing long-term bearish momentum.
Bulls should keep defending the recently established low at 1.4700 in order to gather enough momentum to initiate a bullish corrective movement. Initial bullish target would be located at 1.5000.
Wait for a bullish pullback towards 1.4950-1.5000 for a low-risk SELL entry. SL to be set as daily closure above 1.5015.
TP levels should be set at 1.4900, 1.4840 and finally at 1.4700.
The material has been provided by InstaForex Company – www.instaforex.com