Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 and 1.3750, respectively. This was taking place until obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904).
Few days later, the bulls managed to break down the lower limit of the ascending channel at 1.3700 after establishing a double top reversal pattern which pushed the pair to record a temporary low at 1.3547.
Fundamentally, the euro witnessed important data releases this week such as inflation rates which showed rebound. Moreover, the total GDP rose during the previous quarter according to the official data released today. This may apply bullish pressure on the market today.
Stabilization below 1.3600 is a must to gather further bearish momentum to reach the estimated projection target of the double-top pattern around 1.3460 (Demand Zone). However, a daily closure above 1.3600 will probably invalidate this bearish view allowing a bullish impulse towards 1.3690-1.3740 to take place.
The material has been provided by InstaForex Company - www.instaforex.com
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