The bigger picture is the loss of 0.6705 base support and the plunge thereafter. The pair printed a low of 0.5510, losing almost 1,200 pips.
Currently, the pair is up on a bounce which is likely to continue this week.
The daily chart above highlights the break of support structures earlier. Now, it is on a corrective bounce. As with any correction, a retest to those levels is the likely scenario. The current momentum on the price action also indicates that we can have further run higher.
The 0.6300 handle comes in as an initial modest corrective target (marked with the blue line) on the run higher, as the level is congested with a bottom, a high, a close and an open on daily candles.
Once the price starts holding higher to it, we can look forward to better testing grounds to the 0.6410 region. A fuller correction can leap towards the 0.6660 zone test.
The 2-hour chart below provides a visual display of the current price action. Namely, we are within a bull channel (blue trendlines), but this could potentially turn out to be a bear flag.
The price is hovering at a very immediate resistance to 0.6215 with the channel top still residing a tad higher to 0.6250.
At present, pull-back towards the dotted mid-section support within this channel is probable, considering we see a halt to around 0.6215-20.
The main support lies around 0.5950-55, which is a must-hold for momentum to tick to the higher side. A break of this channel support would imply we were dealing with a bear flag.
An initial break of the 0.6220 will make way for a 0.6250-55 test. A successive break of the latter could increase bullish momentum further and could send prices to the 0.6300 handle. In case momentum remains at elevated levels, this move could even get us to 0.6410-20.
Momentum beyond 0.6420-30 would put focus on a full corrective target at or around the 0.6650-70 zone.