Overview:
The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range a bearish flag pattern with the projection target at 1.5300.
The market has already pushed further below reaching down to 1.5030-1.4980 where the lower limit of the channel provided support for the pair few weeks ago.
The H4 chart showed a transition phase into a sideways movement that has been maintained within the depicted price range.
On February 5, initial bullish breakout above 1.5220 took place. Shortly after, a new DAILY support was established around 1.5170-1.5200 (ascending bottoms, a sign of ongoing bullish momentum).
The long-term projection target for the recent bullish breakout was already reached around 1.5550 where the previous DAILY bottoms were located (DAILY RESISTANCE).
The DAILY breakdown of the channel's lower limit took place on Monday, allowing an upcoming bearish swing initially towards 1.5180 to take place.
Trading recommendations:
A valid SELL entry could have been taken at retesting of the price level of 1.5550. SL should be located above 1.5600. TP levels are to be placed at 1.5480, 1.5360 and finally at 1.5280.
The price action should be watched at retesting of 1.5150-1.5180. Evident bullish rejection indicates a valid BUY entry towards 1.5320.
The material has been provided by InstaForex Company - www.instaforex.com
