Readings of the European Statistical Office disclosed three weeks ago showed that the European inflation was 1.1% in September, in line with preliminary projections, while it settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
Around 1.3800, previous daily candlesticks represented indecision initiating a bearish retracement towards 1.3450 which failed to provide strong support, and then 1.3280 was tested shortly.
The price zone of 1.3280 - 1.3300 provided strong demand for the pair pushing it higher above 1.3400 - 1.3450 (prominent technical levels).
Persistence of the current bullish channel to push above 1.3450 allowed the pair to reach the next supply levels around 1.3650 then 1.3750, respectively.
Bearish rejection was witnessed last week around 1.3800.
The last bearish impulse, as mentioned last week, failed to break down 1.3650. Instead, the market bulls were trying to push towards 1.3900 when daily closure at 1.3745 was expressed on Friday.
The EUR/USD pair failed to reach 1.3900 (100% Fibo Expansion ). Instead, bearish rejection is manifested today to push towards 1.3630-1.3600 (the most recent DEMAND level).
A daily breakdown below 1.3600 invalidates the short-term bullish view confirming a possible double-top pattern which will be targeting at 1.3460 initially.
