Overview:
On February 5, a temporary bullish breakout above 1.5220 (previous consolidation range) took place. Shortly after, an ascending channel was established at the levels of 1.5170-1.5200. This indicates bullish sentiment on the market.
A projected target for this bullish breakout has been already reached around 1.5550 where the previous daily bottoms were located (solid resistance).
One month ago, the bearish breakdown of the lower limit of the depicted channel occurred enhancing the bearish side of the market and confirming the Flag pattern as bearish.
Significant bearish pressure was applied to the levels of 1.5200 (R2), and 1.4950 (R1 = broken weekly bottom) leading to a quick breakdown.
Persistence below 1.4950-1.5000 indicated further bearish decline. The initial projection target for this bearish breakout was located at 1.4700.
Bearish breakdown of the level of 1.4700 enables the pair to resume its bearish scenario towards 1.4500 and 1.4450.
Bullish pullback towards 1.4775-1.4800 (recent resistance zone) will probably offer a valid sell entry. S/L should be located slightly above 1.4825.
The material has been provided by InstaForex Company - www.instaforex.com
