The price zone 1.3800-1.3880 (dotted on the chart) provided considerable SUPPLY for the EUR/USD pair. This price zone managed to pause the ongoing bullish momentum above the depicted bullish trendline.
Thus, a Double Top reversal pattern was established with a neckline located at 1.3700. This reversal pattern has already hit its projection levels.
On the other hand, we should highlight Thursday's bullish engulfing daily candlestick which emerged off 1.3500 (may pause the ongoing bearish momentum).
The EUR/USD pair is now roughly trapped within a congestion zone extending between 1.3560 and 1.3480 after the bears managed to breakdown 1.3560 last week.
Price levels around 1.3480 then 1.3440 are now exposed to be hit. They correspond to the lower limit of the ongoing bearish 4H channel depicted on the chart.
On the other hand, if bullish pressure emerged off the current levels and managed to fixate again above 1.3560, the pair would probably visit the upper limit of the depicted channel around 1.3640-1.3660.
The material has been provided by InstaForex Company - www.instaforex.com
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