Previously, the price zone of 1.3280 - 1.3300 provided strong demand for the pair pushing it further beyond 1.3400 - 1.3450.
Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 then 1.3750, respectively, when obvious bearish rejection was expressed last week at 1.3800 leading the breakdown of the lower limit of the channel.
The EUR/USD bullish swing was estimated to reach 1.3900 (100% Fibo Expansion ). Instead, bearish rejection was manifested earlier on Thursday to push towards 1.3600 which got broken by a daily closure below it on Friday.
Friday's DAILY closure below 1.3600 confirmed the double top pattern.This will be targeting at 1.3450-1.3430.
4H chart shows a broken ascending channel with a double top reversal pattern which was confirmed at the end of the last week.
As long as the bears are moving below 1.3600, further bearish momentum will be gathered especially if Factory Orders and ISM non-manufacturing data came positive for the USD currency.
Any 4H retesting of 1.3600 is considered a valid SELL entry with SL as daily closure above 1.3600 again.
Daily fixation above 1.3600 again invalidates the short-term bearish view. Instead, it may be a bullish indicator for a bullish impulse to test 100-SMA at 1.3690 roughly.
