I mentioned the bearish shooting star daily candlestick that occurred previously around 61.8% Fibonacci level.
Such significant bearish pressure offered SELL positions at retesting that took place few days later.
Note the bullish rejection initiated when market pushed below 1.6100 and 1.6060 on September 9. Another bearish leg is now expressed below 1.6060. Further price action should be considered.
For conservative traders, Long positions are favorable after such a long bearish movement and at such low prices.
Price levels around 1.6060 would probably offer a valid BUY entry. Just signs of bullish rejection is needed to confirm counter-trend position.
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
The recent bullish leg which extended between 1.6060 ( the lower limit of the channel ) and price levels around 1.6400 looks strong compared to the recent bearish swings ( no obvious bearish trend structure and a weekly bearish gap (about 150 pips) enabled bears to test 1.6058 ).
High probability of reversal exists around 1.6060.
The market is pushing below 1.6060.That's why, the bearish rejection initiated off 1.6450 should be considered.
The current bearish limb would be targeting at 1.5900 ( site of prominent monthly bottoms ) as long as the market keeps closing below price level of 1.6060.
