The pair registered gains for third consecutive day, rising to a fresh high in over two and half years and is now headed for its highest weekly close since April 2011. The pair now seems all set to continue rising towards 2011 highs to 1.6730 – 1.6740 zone, also marking an ascending trend-line resistance extending from Oct. 2013 high through highs touched in Jan. 2014. However, should the pair manage to clear the 1.6730 – 1.6740 resistance zone, it is likely to witness further appreciating move in the near-term towards 1.6880 – 1.6900 horizontal resistance zone.
Meanwhile, the ascending trend-line seems to form a part of a possible rising wedge chart pattern, which is considered to have a strong bearish bias. Hence, should the pair now weaken below 1.6600 immediate support, it could possibly continue witnessing near-term weakness towards retesting 1.6320 – 1.6300 strong support zone, marking the lower trend-line support of the rising wedge and 100-day SMA. Intermediate strong resistance levels are pegged near 1.6500 – 1.6480 zone and near 1.6400 round figure mark.
