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).
Recent bullish recovery is expressed around 1.3750. That's why the current bullish pullback is being expressed towards 1.4000 again.
The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for price reaction. It may offer a valid sell entry to the current bullish pullback which is taking place this week.
On the other hand, the price zone of 1.3370-1.3400 remains a significant support zone to be watched for a valid buy entry if enough bearish momentum is maintained below the prominent weekly support (1.4000).
A valid sell entry can be offered around 1.4120 (Fibonacci Expansion 100%) if the current bullish pullback persists above 1.4000. S/L should be set as a daily closure above 1.4150.
On the other hand, 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.