The congestion zone between 1.6765 and 1.6815 was established during February and March. These levels correspond to previous prominent tops which was established back in February.
The depicted BLUE uptrend line remained intact since it was established in November 2013 until it got broken-down on May 28. Moreover, the bulls are retesting the backside of the same broken trend line.
On the 4H chart, strong bearish rejection was expressed off 1.6920 leading to bearish breakdown of the depicted bullish channel as well as successive previous support levels now acting as resistance.
The long-term perspective remains bearish aiming to form another bearish limb that would extend below 1.6730 ( the most recent bottom ) as long as the bears keep defending this newly established resistance zone located between 1.6800-1.6845.
If the pair resumes its bearish momentum, we should note that price action should be watched around 1.6650 to take advantage of a possible bullish corrective movement.
On the other hand, daily closure above 1.6815 will expose higher resistance levels around 1.6870 and 1.6900 as well.
