Overview:
The daily closure below the recent bottoms located around 1.5540-1.5560 rendered the previous consolidation range as a bearish flag pattern with projection target at 1.5300.
The market has already pushed further below this level reaching down to 1.5030-1.4980 where the lower limit of the channel has been providing support for the pair over the past few weeks.
Earlier this week, bullish recovery was manifested on the daily chart. A temporary bullish breakout above the upper limit of the short-term flag pattern took place.
The H4 chart shows transition into a sideway movement with mild bearish tendency, maintained within the depicted sideway channel.
The key-support level for today is the price level of 1.5030 (yesterday's low). Breakout below 1.5025 exposes the lower limit of the current ranging movement located around 1.4920 where bullish recovery should be anticipated.
Trading recommendations:
A short-term LONG position may be considered at retesting of price zone of 1.4920-1.4900. Target Levels should be located at 1.5030, 1.5100 and 1.5150.
The material has been provided by InstaForex Company - www.instaforex.com
