Downside decline of the EUR/USD currency pair temporarily stopped at the previously mentioned demand zone 1.3700-1.3400.
The importance of this zone is obvious on the weekly chart as It's :
1. Retest of the broken downtrend line which started September 2009 and broken in March 2011.
2. The lower limit of the bearish channel that started in May this year.
3. Multiple Previous congestion zones marked on the chart.
Based on the previous analysis, We suggested a bullish opportunity of the best prices of this zone.
Daily chart reveals the strength of the current level 1.3650 which is 61.8% Fibonacci level of the bullish swing from 1.2900 to 1.4880.
Yesterday we had a daily hammer closing above this fibonacci level & back inside the bearish channel after little breaching of it.
Final target of this position is at the upper limit of the bearish channel around 1.4050 with profit taken every 75-100 pips.
SL should be weekly closure below 1.3400.
