We talked about consolidation of the pair within the price range 1.2950 -1.3240 and the importance of breakout off this zone for the liberation of the pair.
Breakdown of the most prominent support zone around 1.2950 revived a "Double-Top" pattern on the daily chart that has final target at 1.2680.
EUR bears are being interrupted at Intraday support (1.2800-1.2830), failing to have daily/weekly closure below 1.2800 indicates bullish rejection.
A visit towards the previous low at 1.2760 is not excluded yet.
A strong demand level is located at 1.2750 (corresponding to a previous low that was established on April 4). It is expected to be visited in case of 1.2800 breakdown.
A possible bullish Head and Shoulders pattern is being formed on the 4H chart with neckline located at 1.2900 to be targetting at 1.2995. However, it's important to note that price Levels 1.2950 (broken support) will probably provide Intraday resistance for the EUR/USD pair to maintain any bullish trials in the short term. Hence, price action should be watched there.
The EUR/USD pair is still bearish which needs 1.2790 breakdown to invalidate the reversal pattern. However, bullish retracement towards 1.2950 is not excluded to bring more SELLERS before further decline.
Fundamentally, the euro fell during the afternoon trades against most currencies due to profit-taking as investors are waiting for more evidence that the Fed began to reduce the monetary easing program.
