The nearest SUPPLY zone is located between 1.3680 - 1.3730 which corresponds to the 50% and 61.8% Fibonacci levels.
Yesterday, the pair expressed an inverted hammer daily candlestick while retesting 1.3680 (50% Fibonacci).
Fundamentally, industrial production in the euro area witnessed an unexpected decline of 0.7% on a monthly basis in December compared to its previous reading of 1.8%.
This contributed to the ongoing bearish impulse taking place right now. Initial bearish target for this movement is located near 1.3530 (previously established bottom).
On the other hand, a more prominent DEMAND level is located around 1.3450.
As we can see in the chart, bulls pushed towards the price levels around 1.3737 where strong bearish rejection was expressed.
As expected, a corrective bearish movement towards 1.3500 took place shortly after.
The price zone of 1.3500-1.3470 provided considerable support for the pair pushing again towards 1.3670 (50% Fibonacci) which corresponded also to the upper limit of the ongoing bearish channel.
As expected, a price near 1.3680 provided a valid SELL entry. This SELL position is already running in profits now. Initial target is located at 1.3520 then 1.3470, while SL remains as 4H closure above 1.3680.
The material has been provided by InstaForex Company - www.instaforex.com
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