Daily view:
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 last Monday's bearish engulfing candlestick. However, lack of bearish follow-up was witnessed this week when the pair spiked up to 1.3587.
Yesterday's daily candlestick was an inside-bar representing indecision of the market, then today we had a false bullish breakout (after US shutdown news) until the US manufacturing sector showed slight improvement in today's data release.
Looking at the daily candlestick of Friday which is similar to today's one, the bulls reached 1.3565 then failed to stabilize there. Instead, daily closure took place at 1.3520 rendering price level 1.3565 a valuable supply level to be watched.
Bearish retracement movement is expected to take place after breakdown of Friday's low at 1.3470 to push the pair towards 1.3430 then 1.3375.
Another probability that may happen if the pair expresses daily closure above 1.3500 there is another bullish swing towards 1.3590-1.3600, provided that the bulls manage to break above 1.3560.
