Focal point: 1.6340
Preferred scenario: Long positions above 1.6340 level, targeting 1.6585-1.6570 levels.
Alternative scenario: Short positions below the level of 1.6340, with targeting levels 1.6140-1.6120
Comment: We had previously indicated in an analysis for this pair about an expected drop through this link
, as the price reached the resistance zone 1.6585-1.6570 and the descending trend line from last June's high, with a false break above these levels
The price had fallen below the key point 1.6530, indicating some expected drop at that time, with overbought signs on the RSI momentum indicator
Supported by the presence of the harmonic SHARK pattern with a correction of 113% fibo from the XA leg, the price has already headed towards its targets at 1.6355-1.6335 levels
Now the price stabilizes at point B of the pattern, which represents a strong point for a rebound to the upside, with the support area located at 1.6355-1.6335 levels
If the price fails to rebound from this area and breaks it, it will continue its decline to 1.6140-1.6120 levels
