Price Zone 1.3515-1.3560 represents a valuable Supply zone that kept price below for almost two months. The pair is showing some bearish rejection manifested in the Daily candlesticks of previous week as well as Yesterday's bearish engulfing candlestick.
Looking at the Inside-Bar of Friday, a bearish retracement movement is expected after breakdown of Friday's low at 1.3495 to push the pair towards 1.3430.
Another probability that may happen if the pair returned to consolidate above 1.3495, is another bullish swing towards 1.3590-1.3600, provided that the bulls manage to break above 1.3550.
European stock as well as forex markets opened on a slight decline during Monday as traders accepted the election results, where the vote showed victory for Angela Merkel's party.
A small Head and Shoulders pattern is being confirmed where the broken neck-line is located around 1.3500-1.3490. Fixation below this level will lead to 1.3425 as a target for the confirmed pattern.
Fixation above 1.3515 invalidates this bearish view mentioned above. However, a valid sell entry can be taken at the current prices with a target at 1.3425 (where the lower limit of the movement channel is located) with SL located above 1.3545.
