Two 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 where bullish recovery was expressed.
Today, the bulls have a solid Intraday Support level located around 1.1300-1.1350 where the most recent daily top is located. A valid Buy entry may be offered if retesting occurs sooner than a new bullish breakout.
This week, the bulls have pushed further above price level of 1.1400. However, the upper limit of the movement channel is located around 1.1470 where bearish rejection should be anticipated. Thus, a good short position may be offered there.
Price zone of 1.1470-1.1490 will probably offer a valid SELL entry with SL located just above 1.1550.
Target levels should be set as 1.1430 then 1.1350.
The material has been provided by InstaForex Company – www.instaforex.com