On the daily chart, the EUR/USD pair is expressing a continuation Flag pattern after the bullish impulse was initiated at S2 around 1.2750.
The upper limit of the Flag Pattern will probably provide a temporary resistance for the pair around 1.3115. However, a breakthrough above this level will lead to confirmation of the pattern.
Final Projection target will be located at 1.3400. However, R1 is located at 1.3190 which may provide temporary supply zone to be watched.
Technically, on the 4H chart the EUR/USD pair has been consolidating within the depicted movement channel, the upper limit of which is being tested around 1.3130.
A reversal Head and Shoulders pattern around 1.3190 took place which has its neck-line located around 1.3000. However, signs of pattern failure seem to exist this week.
The 4H chart shows important levels; S1 around 1.2970 which pushed the EUR/USD pair again above 1.3000.
Fundamentally, the unemployment rate rose in the euro zone to its highest level during the month of March, highlighting the impact of the European debt crisis on growth in the region. This came according to official data released today.
Decline in CPI index for the euro zone in April to the lowest pace since March 2010 according to preliminary data showed today.
