Strong bullish sentiment was found at the support zone around 1.4830, which pushed the pair to the upside to hit 1.5400, and then 1.5700, where two prominent tops were established. Bullish pressure was applied to the area of 1.5430-1.5400 which managed to break through 1.5720, thus matching the August highest level and the recently established top. The market showed an obvious closure above 1.5575 which opened the way towards 1.6000, 1.6170, and then 1.6260. It is important to note that the market expressed bearish rejection from 1.6150-1.6200 which resulted in an Inverted Hammer weekly candlestick. That is why a bearish movement was expected last week provided that the bears continue defending the weekly high at 1.6150. However, the lack of bearish momentum enhanced by the weakness of USD allowed the bulls to step above 1.6200 (127.2% Fibo Expansion) for a short time until bearish domination came back into the market. The pair established a Double Top reversal pattern around 1.6180-1.6200 which provided a valid sell entry, its neckline is located around 1.5900. The pair had to break down the support level located around 1.6040 (100% Fibo Expansion). However, a bullish rejection was manifested around 1.5860 failing to complete the projected targets. Instead, the bulls are pushing today towards 1.6200 trying to test the recent high around 1.6250. Daily fixation above 1.6200 will enable the pair to express bullish movement towards 1.6290 initially where 141.2% Fibo Expansion is located. A sell entry can be taken there upon watching proper bearish price action. SL should be set as daily closure above 1.6300.
