© Dukascopy Bank SA
A robust recovery started on Sep 23 seems to have come to an end, even though four-hour studies are strongly bullish at the moment. The price encountered a formidable resistance area at 1.6429 and after two attempts to breach it looks as likely to slide under the neckline of the double top pattern at 1.6347, an event that should entail a strong sell-off from there.
The currency pair will then enter a 100-pip wide area that is free from any notable levels, but may stop around 1.6258, where the daily S2 and 200-hour SMA create a tough support zone.
© Dukascopy Bank SA