Despite the intraday positivity and failure to consolidate below the key ascending trendline around 1.2835, the pair failed to fixate above 1.2980 we need to see the EUR/USD pair stable below this up trendline in order to pursue the bearish momentum.
We talked about consolidation of the pair within the price range 1.2970 -1.3240 and the importance of breakout off this zone for the liberation of the pair which already took place on May 10.
The "Double-Top" pattern on the daily chart is still valid after breakdown of support zone around 1.2970 which has its final target at 1.2680.
It is important to note that price levels 1.2950-1.3000 (broken support) provided Intraday resistance for the EUR/USD pair. This bearish rejection will probably lead to another down swing targeting 1.2790 then 1.2750.
The EUR/USD pair is still bearish which needs 1.2790 breakdown to resume the bearish movement towards 1.2750-1.2730 initially then 1.2650. However, failure of the pair to breakdown 1.2790 invalidates the bearish scenario in the short term.
Breakdown of 1.2900 confirms and exposes lower boundaries of current consolidation range around 1.2800.
Fundamentally, French consumer confidence fell to the lowest rates in May where families had a state of anxiety about the financial situation after declining economy into recession at the beginning of the year, supporting the mentioned bearish view.
