A breakout above 1.3450 allowed the bulls to push within the bullish channel to hit higher levels around 1.3650 then 1.3750. This bullish momentum was taking place until obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904). Instead, breakdown of the depicted bullish channel took place shortly after (January 2).

This led to the recent bearish movement that almost reached 1.3520.

Obvious bullish rejection took place off the level of 1.352 which is an important key-level on an intraday basis (corresponding to previous price ranges set back in December as well as the lower limit of the channel).

As expected, the pair remains moving within the depicted channel having a strong resistance located at the upper limit of the ongoing channel around 1.3745 (61.8% Fibonacci Level).

Obvious bearish rejection was expressed at 1.3737 (few pips below 1.3745) resulting in 4H closure below 1.3700 (50% Fibonacci Level).

This probably applies further bearish pressure on the pair towards 1.3530.

On the other hand, the bulls need to achieve 4H fixation above 1.3700-1.3740 in order to gather enough bullish momentum to push towards 1.3800. Otherwise, our bearish view remains intact.