Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 and 1.3750, respectively. This was taking place until obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904).
Few days later, the bulls managed to break down the lower limit of the ascending channel at 1.3700 after establishing a double top reversal pattern which pushed the pair to record a temporary low at 1.3547.
At the price level of 1.3545, the pair found solid support which pushed it again above 1.3600 (Bullish engulfing daily candlestick was expressed on Friday with closure at 1.3668). В
Previous Positive fundamental data regarding EURO inflation rates as well as total GDP during the previous quarter allowed enough bullish momentum to be gathered to push EUR/USD again above 1.3600.В
According to data released today,В Industrial production rose in the euro zone more than expected in November, which led to reduced concerns about the outlook of economic growth.
A bullish impulse towards 1.3690-1.3740 is expected to take place.
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A bullish breakout above the upper limit of the depicted short-term bearish channel can be demonstrated on the 4H chart.
The EUR/USD pair is now consolidating around 100-SMA (located at 1.3660) showing some degree of indecision probably preparing for a corrective movement towards 1.3600.
The pair remains bullish as long as the bulls keep defending 1.3600 as a demand level.В В
A valid BUY entry can be taken at 1.3600 with SL as 4H closure below 1.3570.
