Price levels around 1.0620 (corresponding to the lower limit of the channel) initiated the current strong bullish swing on July 2.
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.
Recently, 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 where the most recent daily top is located. Bullish positions have been anticipated at retesting.
Note the previous few daily bullish candlesticks which indicated temporary SUPPORT being offered around 1.1270.
Thus, another bearish pull-back towards price level of 1.1380 was anticipated before further bullish correction can take place.
The pair may continue trending-down towards 1.1220 ( Significant Fibonacci Level and the lower limit of the ongoing channel ) where a dependable with lower-risk bullish position can be offered for conservative traders. Stop Loss should be set as daily closure below 1.1200.
Price level of 1.1380 should be watched for price action. A sideway range between 1.1270 – 1.1380 is now anticipated. The upper limit of which is located around 1.1380.
An Intraday SELL entry can be offered at retesting.
The material has been provided by InstaForex Company – www.instaforex.com