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 3rd week in a row closing above 1.3240 important level corresponding to previous May's high.
The next supply zone will be located around 1.3310-1.3333 corresponding to a long-term downtrend line depicted on the chart which got visited today with significant bearish pressure being applied.
Bearish reversal daily candlesticks are expressed after visiting Psychological Level 1.3300, this may enhance a retracement movement towards 1.3170.
Previous congestion zone is more obvious on the 4H chart located between 1.3070-1.3175, a bullish breakout took place last week reaching up to 1.3310 this week.
The EURO pair is not expressing strong bullish steam after bullish breakout took place last week. However, consolidation above 1.3230 (lower limit of a bullish 4H channel) favours the bullish direction towards 1.3300-1.3333. However, today we can see obvious bearish trials to step below 1.3230.
Intraday demand zone is located around 1.3175 then 1.3125 which corresponds to mid-range support, breakdown of which will delay further bullish momentum in the short term.
The pair needs to get out of price range 1.3230 - 1.3170 in order to collect sufficient steam to move in the same direction of the breakout.
Fundamentally, the market is reacting to the results of the monthly meetings of the European Central Bank and the Bank of England.
