Consolidation above the previously broken downtrend depicted in the chart continued for 10 day in a row before the current bearish dip took place on Thursday.
This took place after finding solid supply around 1.3400. The previous weekly candlestick had a small bullish body representing failure of the bulls to close above the high of the precceeding weekly candlestick at 1.3380, which applied bearish pressure again on the pair during last week, despite the bullish closure of the precceeding weekly candlestick.
Last week, the EUR/USD pair managed to have a bearish engulfing Weekly candlestick which was formed by the strong bearish momentum witnessed especially on Thursday supported by the fundamental data about inflation data in Germany which represented deterioration.
The short-term view turned to be bearish towards 1.3180 (previous week's low) where the SMA-100 comes to meet the pair roughly, where price action should be watched carefully for a possible BUY entry.
As depicted on the chart, today's daily candlestick remains an inside bar that failed to bypass the previous candlestick's low. If this goes on untill the daily closure, there would be high probability of bullish reversal to the upside to test the high around 1.3250. However, the bearish weekly closure may exhibit SELLING pressure on the market to exceed this low around 1.3175 for further decline towards 1.3150 and 1.3100 initially.
