Five months ago, a prominent bottom was established around 1.0260. This happened after the intensive bearish momentum that led to 1.0254. An important key level was located around 1.0505. This was the key level for the previous weeks' movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located. The nearest support zone was located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where obvious bullish rejection was expressed to get the pair back above 1.0250 again resulting in a bullish Hammer weekly candlestick. As expected, bullish momentum was expressed at retesting of the lower limit of the ongoing channel around 1.0280 pushing higher towards 1.0460, and then 1.0500 which was bypassed last week. The price level around 1.0470 remains the nearest considerable support for the pair. Last week, the pair failed to break down below 1.0400. Instead, the bulls established an ascending bottom around 1.0400 which invalidated our suggested sell position. Daily fixation above 1.0475 enabled the pair to reach 1.0575 where a previous top corresponding to July's highest level is located. Price action should be watched carefully for a possible sell position with SL located above 1.0610.
