Strong bullish sentiment was found in the support zone around 1.4830, which pushed the pair to the upside reaching 1.5400 then 1.5700 where two prominent tops were established.

The uptrend line around 1.5430-1.5400 applied bullish pressure on the pair which was able to break trough 1.5720 which corresponds to August's highest level and the recently established top.

The market expressed obvious closure above 1.5575 which invalidated the H&S reversal pattern. This opened the way towards 1.5900, 1.6000 and 1.6170.

It is important to note that the market expressed bearish rejection off 1.6150 which resulted in an inverted hammer WEEKLY candlestick. That is why, bearish movement was expected to take place during this week provided that the bears remain defending the weekly high at 1.6150. However, lack of bearish momentum enhanced by the weakness of the USD prevented further decline.

Fibonacci expansion 100% is located at 1.6040 where the upper limit of the ongoing channel is located. Stablilization above this level opens the way towards the next one around 1.6200 where Fibonacci Expansion 127.2% is located.