On the daily chart we can see that the bulls found enough demand around 1.3570 to push again towards 1.3680-1.3700 for another retesting.
A prominent top was established around the same price zone on January 24. However, this time the bulls managed to breakthrough above 1.3700 and a bottom is probably being established around this price level.
An inverted Head and Shoulders is being established if the bulls manage to keep fixating above 1.3700 (neckline) aiming at 1.3900 corresponding to 100% Fibonacci expansion of the previous bullish swing.
On the other hand, daily fixation below 1.3700 again may open the way towards 1.3630 and 1.3600 initially.
The bullish impulse managed to bypass the upper limit of the bearish channel. Thus, the bulls established a bullish channel as depicted on the chart.
The upper limit of the bearish channel also corresponded to 50% Fibonacci level that got broken too.
This opened the way towards 61.8% Fibonacci targeting at the upper limit of the ongoing channel which comes to meet the pair around 1.3830.
Continuous consolidation above 1.3730 is a must to maintain enough momentum for higher targets.
