GCad Analysis

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Daily: In the previous weeks, the pair has completed the double bottom formation and successfully reach the target at 1.71. However at resistance 1.71, the pair has found strong resistance for 2 consecutive day as it printed a strong Shooting Star formation and closed just below 1.70. The resistance also coincide with the downtrend, indicating that there could be another leg lower. In this case, the pair is expected to retest the double bottom neckline 1.685. If a sustained break is seen at 1.685, it will expose further downside at 1.66. Alternatively, if 1.685 is rejected, the pair could potentially enter into a long term bullish reversal trend. A break above 1.71 would invalidate the bearish setup.
4H: Going lower into the 4 hour TF, we can see that the pair is currently in a Rising Wedge formation, indicating the bullish momentum could be temporary as it become harder to make higher high. We can also see that the price has found strong resistance at 1.71 region, where the pair has touch the zone 3 time before being rejected sharply, putting pressure on the small uptrend. In addition the pair is also in a 4 hourly range 1.697 - 1.71 where it seems to be forming a double top formation. A clear break of the range at 1.697 would expose the downside at 1.685 & 1.66. Alternatively, a break above 1.71 would invalidate the bearish setup and potentially propel the pair into further bullish run.