Few months ago, the price levels around 1.0620 (corresponding to the lower limit of the channel) initiated the current strong bullish swing.
A bullish breakout off the movement channel took place in August. Since then, following short time of sideway movements, the pair has been trending-up within the depicted bullish channels.
Bulls were pushing towards the upper limit of the movement channel (1.1370) in mid-October. Immediate bearish rejection was expressed as anticipated after such a long bullish swing resulting in a bearish correction towards 1.1200.
4H fixation below 1.1230 – 1.1210 ( 50% Fibonacci level ) temporarily allowed bears to push towards 1.1100 ( the lower limit of the bullish channel ) where bullish recovery was expressed.
Last week, bulls have pushed further above price level of 1.1400. However, the upper limit of the movement channel was located around 1.1470 where bearish rejection was anticipated.
Bulls have a solid Intraday Support level located around 1.1280-1.1310 where the most recent daily top is located. Bullish positions maybe offered there at retesting.
Note Yesterday’s daily bullish candlestick which indicates SUPPORT being offered around these levels.
Price zone of 1.1470-1.1490 offered a valid SELL entry with SL located just above 1.1550. Target levels were reached at 1.1430 and 1.1320 shortly after.
Price action should be watched at price level of 1.1290 for a possible BUY entry if significant rejection is expressed.
Otherwise, the pair may continue trending-down towards 1.1220 ( Significant Fibonacci Level and the lower limit of the ongoing channel ) where a more dependable with lower risk bullish position can be offered. Stop Loss should be set as daily closure below 1.1200.
The material has been provided by InstaForex Company – www.instaforex.com