The EUR/USD pair reaches a demand zone extending between 1.3100-1.3050 after an obvious negative weekly candlestick that closed last Friday.
This bearish pressure was applied after testing of the previously mentioned weekly downtrend line (depicted in Red) that extended from previous top at 1.4940.
The previously mentioned bullish 123 pattern (confirmed on June 6) is still intact targeting 1.3600, as long as the pair is consolidating above 1.3000. However, traders must be cautious as trading below 1.3200 threatens the pattern viability.
Presence of the pair at the current demand zone extending down to 1.3050 after this sharp decline with a confirmed reversal pattern that did not reach its bullish target yet enhances the bullish reversal towards 1.3200 initially.
Trading recommendations:
Risky traders can profit from a possible bullish retracement off the current levels with SL located below 1.3000 and target levels at 1.3180, 1.3250 and 1.3400 respectively.
