Looking at wider picture, the monthly chart, the price was rejected on the first test of the 61.8 retracement level for the long term wave(1.4942-1.2039), which is also just below the main descending resistance for the bear trend that started from 2008 top. Meantime, the structure of the rise since 2012 bottom at 1.2039 is pretty similar to a formation as well.
Near term, despite the recent rebound, the structure of lower highs and lower lows is still in place , although price has managed to to break the short term , however the breakout should be taken with a grain of salt, as recent price action suggests a sideways bias, which is clear on a flattened 50-days and as price continues or break above and below the average. And currently retesting a key horizontal resistance at 1.3700-1.3740.
A break above that resistance at 1.3740 may be a short term signal and extend the rally, but the room towards the first resistance would be only 60 pips, as price would face a cluster of resistance levels among 1.3800-1.3890 area.
Lets see how price reacts to 1.3700 resistance for now, for any signal that may suggest the continuation of the sideways market, and the end of the current wave for another leg lower within the context of the range bias.
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