After the EUR/USD pair recorded a new high at 1.3415 this week, significant bearish pressure was appliead enhanced by the Federal statement that gave US dollar much strength against most other currencies.
This events activated the other scenario of reversing off 1.3425-1.3450 and heading towards 1.3180 for retesting.
Price Zone 1.3425-1.3450 corresponded to backside of the broken channel and a weekly downtrend line initiated at 1.4940.
Yesterday, the EUR/USD pair dipped down to 1.3160 during the trading session, we had daily closure at 1.3220 which is quite bullish price action.
Today, there is another bearish trial to step below 1.3180 and 1.3160. It is important to note that breakdown and consolidation below 1.3180 probably opens the way towards 1.3050.
The pair stepped below 1.3220 (previous support and SMA 100) that turned now into partial resistance.
On the 4H Chart, the nearest demand zone extends between 1.3100-1.3050 where bullish recovery can be expected.
Resuming bullish movement needs consolidation above 1.3220 again. Otherwise, further bearish pressure may be applied towards 1.3100.
