A breakout above the previous resistance level of 1.3450 allowed the bulls to push within the bullish channel to hit higher levels around 1.3650 then 1.3750.

This bullish momentum took 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.

After few days of consolidation around SMA-100, bullish impulse was initiated at 1.3520. This led to a long full-bullish engulfing daily candlestick.

On Friday, the bulls pushed towards the price levels around 1.3737 where strong bearish rejection was expressed resulting in two successive shooting star Daily candlesticks on Friday then this week on Tuesday.

This may indicate a possible corrective movement to occur towards 1.3525-1.3550 (where the depicted uptrend line and SMA-100 come to meet the pair).

Price Zone of 1.3525-1.3550 will probably provide a valid BUY entry with SL as daily closure below 1.3500.

Obvious bullish rejection took place off the level of 1.3520 which is an important key-level on an intraday basis (corresponding to previous price ranges established 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 1.3700 (50% Fibonacci) then 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 1.3575 then 1.3530. Breakdown of 1.3630 (where SMA-100 comes to meet the pair) is mandatory to gather enough bearish momentum to push towards 1.3500.

Fundamentally, M3 money supply has exceeded the expected growth during the month of December, while private loans decreased for the 20th month in a row, according to official data released today.

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 enhanced by positive fundamental data. Otherwise, our bearish view remains intact.