Overview:
On February 5, initial 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 of the market.
Projection target for this bullish breakout was already reached around 1.5550 where the previous DAILY bottoms were located (DAILY RESISTANCE).
Last week on Monday, an obvious breakdown of the lower limit of the depicted channel occurred, enhancing the bearish side of the market.
Significant bearish pressure was applied over the price levels of 1.5200 (R2) and 1.4950 (R1 = Broken Weekly Support).
Bearish persistence below 1.4950-1.5000 indicates a further bearish decline. Projection target for the recent bearish breakout would be located at 1.4700.
Trading recommendations:
Wait for a bullish pullback towards 1.4950-1.5000 for a low-risk SELL entry. SL to be set as daily closure above 1.5000. 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
