Consolidation above the previously broken uptrend line goes on this week too after the pair established a consolidation range between 1.3060 and 1.3180.
The weekly candlestick came bullish for the 2nd week in a row closing at 1.3140 after the pair found strong demand at 1.3060-1.3075 corresponding to SMA 100 and the lower limit of congestion zone.
The next supply zone is located around 1.3225 (previous top established in May) where price action should be watched.
The congestion zone is more obvious on the 4H chart where a bullish trial to step above the upper limit 1.3180 is taking place today.
The previous trial to breakout off this congestion zone failed when the pair expressed inverted hammer 4H candlestick four hours ago. However, success to do so will push the pair towards projection target roughly located at 1.3277.
Intraday demand zone is located around 1.3125 which corresponds to mid-range support.
Fundamentally, the euro rose against the USD during today. However, gains were limited during those trades. Speculation that the Fed would reduce its bond-buying program later this year will support the USD currency.
