On Friday, the EUR/USD pair expressed quite significant bearish weekly closure at 1.2830 after hiting the previously mentioned demand zone extending between 1.2750-1.2820.
This demand zone corresponds to a previous low established in March as well as another buttom established in May which was breached Yesterday.
It's expected for the pair to gain some recovery off this support zone which will probably push towards 1.3000 for further testing before resuming the ongoing bearish momentum.
It's important to note that the pair broke-down an uptrend line that was established on July 2012, this ensures the long-term bearish view for the pair.
Price action should be watched around 1.2820 for signs of bullish reversal and fixation above which, in order to benefit from this expected correction move towards 1.3000 with SL as 4H closure below 1.2750.
Fundamentally, European stock markets fell today while investors are waiting for the final decision of the U.S. Federal Reserve as well as the disappointing Chinese trade data. At the same time, Italian stocks came under some pressure after the agency "Standards & Poor's" cut its credit rating.
