Since Mid-November, Successive Lower Highs were demonstrated around the price levels of 1.3060, 1.2920 and 1.2800 maintaining movement within the depicted H4 bearish channel
Shortly after, a quick decline was demonstrated towards the price level of 1.2500 before bullish recovery could take place on December 12.
A bullish Head & Shoulders pattern was demonstrated on the H4 chart with a neckline located around 1.2650-1.2680. Hence, a successful bullish breakout above the depicted bearish channel was demonstrated on December 24.
On December 31, an early bullish breakout attempt above 1.2720 was demonstrated on the H4 chart. However, the market failed to maintain sufficient bullish momentum above 1.2800 (mid-range of the depicted consolidation range).
That's why, another bearish pullback was executed towards 1.2500 (backside of the broken channel) where significant bullish recovery was demonstrated during last Thursday's consolidations.
This week, another bullish breakout above 1.2720 was attempted to resume the bullish scenario of the market towards 1.2800, 1.2880 and 1.3000. Otherwise, the pair remains trapped within the previous consolidation range (1.2500-1.2720).
Bullish persistence above 1.2720 is mandatory for buyers. Any bearish decline below 1.2600 invalidates the bullish scenario suggesting further bearish decline towards 1.2440.
On the other hand, the price level of 1.2800 stands as an intraday key-level corresponding to mid-range of the previous consolidation zone (1.2720-1.2870 which needs to be broken for further bullish advancement.
The material has been provided by InstaForex Company - www.instaforex.com