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On March 24, by breaking down 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.
The bears managed to break down 1.4950 corresponding to 50% Fibonacci level last week (the nearest support level). This exposed the price level of 1.4750 (61.8% Fibonacci).
As expected, the bears failed to fixate below 1.4750 on a daily basis. This hindered further bearish progression giving some time for a sideway consolidation for retesting of 1.4945 (50% Fibonacci).
After a few days of indecision around 1.4750, the bulls initiated a bullish spike off 1.4725 and finally they were able to push above the upper limit of the 4H congestion zone.
Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls fail to pursue the bullish breakout leading to its failure.
On the other hand, the lower limit of the depicted triangle located around 1.4850 prevented a further bearish decline, providing a considerable support for the pair.
As suggested in previous articles, the 4H chart shows an expanding triangle pattern being established at the current key levels. This is a bearish signal and an indicator for an upcoming bearish pressure which has been applied since then.
Overall, the daily chart suggests bearish tendency especially if the daily candlesticks maintain closures below 1.4940. This will open the way down to 1.4810 and 1.4750.
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