Consolidation above the previously broken downtrend depicted on the chart goes on for the 6th day in a row.
This took place after finding solid supply around 1.3200. The previous weekly candlestick was a pin-bar representing hesitation after failing to step above the previous weekly high 1.3400.
The EUR/USD pair stalled on Friday, forming a shooting star just below key 1.3400 resistance without actual testing of the level but on Tuesday, the market has already bypassed 1.3400 reaching 1.3450, the first supply level to meet the pair.
As expected, a rebound from Tuesday’s high took place yesterday, back down toward support around 1.3400 then 1.3300 where the backside of the broken downtrend line is located, probably providing demand for the pair.
In general, as long as the market is contained above 1.3330 on a daily basis, there is potential for another bullish movement towards 1.3450. However, breakdown of 1.3330 leads directly towards 1.3250-1.3200.
Fundamentally, preliminary results issued by the economic institution Markit showed breadth of activity of private business sector in the euro zone to the highest levels during two years, backed by the strong performance in Germany. This may constitute a bullish pressure at the current technical demand zones.
