In March, the failure of the bulls to fixate above 1.3880 applied enough bearish pressure on the pair towards the recent demand zone around 1.3700.
At retesting of 1.3700, significant bullish pressure was applied pausing the recent slide off 1.3965 which led to another ascending impulse towards 1.3880.
On April 11, daily candlestick came as a bearish "Doji" indicating lack of enough bullish momentum above 1.6880. This was followed by bearish engulfing daily candlesticks aiming to apply bearish pressure on price level of 1.3800 which is still offering support so far.
At the same time, several bullish attempts (including today's bullish spike) took place to step above 1.3850-1.3880. However, immediate bearish reaction is applied resulting in successive reversal daily candlesticks pushing again towards 1.3800.
Daily breakdown of 1.3800 signals a strong bearish impulse probably towards 1.3740 initially.
Since the EUR/USD pair broke below 1.3855, the pair has roughly been moving sideways with slight bearish tendency until the depicted uptrend line came to meet the pair roughly at 1.3700-1.3680 enhancing this price zone as significant intraday demand. This led to the recent bullish impulse above 1.3810 and 1.3855.
For the bulls, price zone of 1.3810-1.3785 remains the nearest DEMAND zone which provided a valid BUY entry previously. It corresponds to the lower limit of the ongoing consolidation range.
On the other hand, 1.3880 remains the nearest supply level for the bears. It should be watched for early exit from the current bullish position in case significant bearish momentum is expressed. . Stop loss for the bullish position should be advanced to 1.3770 to secure some profits.
The material has been provided by InstaForex Company - www.instaforex.com
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