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On December 30, a significant bearish rejection took place around the level of 0.6840 (daily resistance level) similar to what happened previously on October 23.
Moreover, a daily closure below 0.6750 allowed a quick bearish decline to occur initially towards the level of 0.6500, which was broken to the downside as well.
The depicted chart illustrates a double-top reversal pattern. The depicted support level at 0.6430 should be broken downwards in order to confirm the reversal pattern.
However, traders should note that the level of 0.6430 constitutes the significant support level, which corresponds to the backside of the broken downtrend line depicted on the chart.
Hence, a strong bullish rejection and a valid buy entry were expected around the zone of 0.6430-0.6400.
Today, a bullish closure above 0.6490 is mandatory to push the pair towards higher bullish targets.
On the other hand, a bearish daily closure below 0.6400 opened the way towards 0.6250 where multiple previous bottoms were located (a low probability).
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