Four months ago, a prominent bottom was established around 1.0260. This happened after the pair found strong bearish pressure around 1.0555-1.0600, this was followed by intensive bearish momentum that led to 1.0254.
An important key level was located around 1.0505. This was the key level for the last week's movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located.
The nearest support zone is located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180, where obvious bullish rejection was expressed to get the pair back above 1.0250 again on Thursday, resulting in a bullish hammer Weekly candlestick. Since then, the pair had been consolidating within 70 pips range between 1.0260-1.0340, untill we had a bullish breakout at the daily closure of October 8.
In the absence of important economic data ( and no NFPs ) from the United States last week, the market focused on Canada's employment report released on Friday which lead to bearish retracement again towards 1.0340 ( the most recent supply zone). Bullish momentum was expressed earlier this week untill Yesterday when the pair expressed a bearish engulfing daily candlestick that brought the pair back to retest the lower limit of the ongoing channel around 1.0280.
The price level around 1.0465 remains the nearest considerable resistance for the pair as long as price zone of 1.0335-1.0260 remains defended by the bulls. A valid SELL entry is recommended at retesting with SL located above 1.0500.
