A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).
A significant bearish rejection was observed around 1.3450. Hence, another consolidation range was established from 1.3450 down to 1.2800.
On December 7, a bullish breakout above 1.3450 (the upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence, a bullish visit towards the resistance level of 1.4120 (Fibonacci Expansion 100%) was executed.
Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 (141.4% Fibonacci expansion) where evident bearish rejection was expected (a bearish engulfing weekly candlestick).
The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for price reaction during the current week's consolidations. It offered a valid sell entry on a bullish pullback that took place yesterday.
On the other hand, the price zone of 1.3370-1.3400 remains a significant support zone to be watched for valid buy entries if enough bearish momentum is maintained below the mentioned key level (1.4100) and prominent weekly support (1.4000).
As we expected, two valid sell entries were suggested around 1.4650 (141.4% Fibonacci expansion) and around 1.4120 (Fibonacci Expansion 100%). Both positions are running in profits. S/L should now be lowered to 1.4120 to secure our profits, while the next T/P levels remain projected at 1.3800 and 1.3650.
Conservative traders should wait for a bearish pullback towards the zone of 1.3370-1.3400 for a valid buy entry. S/L should be located below 1.3320.