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.
Positive fundamental data regarding EURO inflation rates as well as total GDP during the previous quarter allowed enough bullish momentum to be gathered to push EUR/USD again above 1.3600.
At the price level of 1.3545, the pair found solid support which pushed it again above 1.3600 (Friday's daily closure was at 1.3668). This temporarily invalidates the previously mentioned bearish view probably allowing a bullish impulse towards 1.3690-1.3740 to take place.
The 4H chart shows a bullish breakout above the upper limit of the depicted short-term bearish channel.
A possible bearish retracement can take place in response to 100-SMA (located at 1.3660) pushing towards 1.3600, where we can take a valid BUY entry with SL as 4H closure below 1.3570.
The pair remains bullish as long as the bulls keep defending 1.3600 as a demand level.
The material has been provided by InstaForex Company - www.instaforex.com
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