Strong bullish sentiment was found at the support zone around 1.4830, which pushed the pair to hit 1.5700, where two prominent tops were established untill the bulls initiated another bullish impulse towards 1.6200 where other two prominent tops were established.
It is important to note that the market expressed bearish rejection from 1.6150-1.6200 which resulted in an Inverted Hammer weekly candlestick.
That is why a bearish movement was expected last weeks 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.
The pair had to break down the support level located around 1.6040 (100% Fibo Expansion). However, bullish rejection was manifested around 1.5860 failing to complete the projected targets. Instead, the bulls are now pushing above 1.6300 trying to test the highest level of 2013 around 1.6340.
Note that daily fixation above 1.6200 enabled the pair to express bullish movement towards 1.63000 initially where 141.2% Fibo Expansion and the backside of the depicted broken uptrend are located.
A sell entry may be taken around the current levels 1.6300-1.6330 upon watching proper bearish price action. SL should be set as daily closure above 1.6350.
