Note the depicted 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 was expressed below 1.6060 ( The weekly low is located around 1.5950).
Long positions was then recommended after such a long bearish movement and around low price levels ( 1.5970 ).
On the other hand, price zone of 1.6100-1.6140 remains a prominent SUPPLY zone to meet the pair.
4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.
Although the recent bullish leg which extended between 1.6060 ( the lower limit of the channel ) and price levels around 1.6400 looked strong compared to the recent bearish swings, the bears managed to break below 1.6060 on Friday.
This bearish swing was targeting at 1.5900 ( site of prominent monthly bottoms ). However, the bears just reached 1.5950 when obvious bullish rejection was expressed to push again towards 1.6150.
Price zone of 1.6100-1.6140 should be watched carefully for price action. Further movements should be considered according to price action expressed at retesting.
For risky traders, a valid SELL entry is now suggested at retesting (upper limit of the channel and previous broken bottom). Stop Loss can be placed above 1.6250.
