Consolidation above the previously broken downtrend depicted in the chart continued for 10th day in a row before what the market is expressing today takes place.
This took place after finding solid supply around 1.3200. The previous weekly candlestick had a small bullish body representing failure of the bulls to close above the high of the precceeding weekly candlestick at 1.3380, which applied bearish pressure again on the pair during this week, despite the bullish closure of the precceeding weekly candlestick.
A rebound from Tuesday’s high (August 20) took place on the next day, back down towards support around 1.3400 and 1.3300, where the backside of the broken downtrend line is located, providing demand for the pair giving a chance for the bulls to retest 1.3400 again.
Yesterday, the EUR/USD pair managed to have a bearish engulfing daily candlestick that lead to the strong bearish momentum witnessed today supported by the fundamental data about inflation data in Germany which represents deterioration.
Now the short-term view turns to be bearish probably towards 1.3200-1.3180 where the SMA100 comes to meet the pair roughly, where price action should be watched carefully for a possible BUY entry.
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Performed by Michael Becker, Analytical expert InstaForex Group © 2007-2013 |
EUR/USD intraday technical levels and trading recommendations for August 29, 2013
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