Note the depicted Shooting Star daily candlestick that occurred previously around 61.8% Fibonacci level. Such significant bearish pressure offered SELL positions at retesting that took place a few days later.
Note that the bullish rejection was initiated when the market pushed below 1.6100 and 1.6060 on September 9. Another bearish leg was expressed below 1.6060 (the weekly low is located around 1.5950).
On the other hand, the price zone of 1.6100-1.6140 remains a prominent SUPPLY zone to meet the pair. It applied a considerable bearish pressure on the pair on Thursday resulting in formation of an Inverted Hammer daily candlestick.
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
A SELL entry was suggested around the price level of 1.6140. It's running in profits now (+220 pips). Stop loss can now be advanced below 1.6120 to secure some profits.
The material has been provided by InstaForex Company - www.instaforex.com
