Considerable support was provided around 1.6250. This price level corresponds to the previous multiple tops as well as the recent bottom.

A breakthrough above the price zone of 1.6590-1.6660 opened the way directly towards the upper limit of the depicted channel around 1.6820 where the bears established a recent top.

As expected, a bearish impulse towards 1.6590-1.6660 took place. Around this price zone, there are two previous tops established at January 2 and 29 respectively.

This renders 1.6590 a considerable support for the pair. Temporary bullish rejection was recently expressed leading towards 1.6666 where the pair topped at January 24.

The pair is still trapped between 1.6700 and 1.6590. Breakout in either direction will allow enough momentum to be gathered in the same direction of breakout.

Breakdown of 1.6590 clears the way towards a more prominent support around 1.6530 ( Fibonacci 50% of the swing 1.6250-1.6820) and probably 1.6470 (Fibonacci 61.8% of the same swing).

Price action should be watched at retesting of price zone of 1.6550-1.6470. A valid BUY entry may be offered with Stop Loss as 4H closure below 1.6500.