Strong bullish sentiment was found at the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400, then 1.5700, where two prominent tops were established.
Bullish pressure was applied off 1.5430-1.5400 which managed to break through 1.5720, thus matching the August highest level and the recently established top.
The market expressed obvious closure above 1.5575 which opened the way towards 1.6000, 1.6170, then 1.6260.
It is important to note that the market expressed bearish rejection off 1.6150-1.6200 which resulted in an inverted hammer weekly candlestick. That is why a bearish movement was expected last week provided that the bears continue defending the weekly high at 1.6150. However, the lack of bearish momentum enhanced by the weakness of USD allowed the bulls to step above 1.6200 (127.2% Fibo Expansion) for a short time until bearish domination came back into the market.
On October 25, there was confirmation of the bearish momentum located around 1.6200 resulting in a shooting star daily candlestick pushing more bearish steam into the market.
The pair established a double-top reversal pattern around 1.6180-1.6200 which provided a valid sell entry on retesting with its neck-line located at 1.5900.
The pair needed to breakdown the support level located around 1.6040 (100% Fibo Expansion) which took place last Friday. However, bullish rejection was manifested around 1.5860 failing to complete the projected targets. Instead, the bulls are pushing today towards 1.6200 trying to test the recent high around 1.6250.
Daily fixation above 1.6040 will enable the pair to express bullish movement towards 1.6200-1.6250 initially which is the upper limit of the current congestion zone. A SELL entry can be taken there upon watching proper bearish price action. SL should be set as daily closure above 1.6220.
