In March, the failure of the bulls to fix above 1.3880 applied enough bearish pressure in the form of a bearish channel towards the recent demand zone around 1.3700.
At retesting of 1.3700, significant bullish pressure was applied pausing the recent slide off 1.3965 which led to another ascending impulse towards 1.3880.
On April 11, daily candlestick came as a bearish Doji indicating a lack of bullish momentum above 1.6880. This was followed by a bearish engulfing daily candlesticks aiming to apply bearish pressure on the price level of 1.3800 which has been offering support until Monday when the depicted long-tailed hammer daily candlestick was expressed.
At the same time, several bullish attempts (including Tuesday's bullish spike) took place to step above 1.3850-1.3880. However, immediate bearish reaction is applied resulting in successive reversal daily candlesticks pushing again towards 1.3800.
On the other hand, a price level of 1.3800 has been providing bullish support so far. Wednesday and Friday's daily candlesticks are bullish engulfing daily candlesticks that originated off this level.
Today, we have a bullish breakout above 1.3880 and on its way towards 1.3950 ( the most recent top ). Careful price action should be watched to assess the next destination of the pair.
Since the EUR/USD pair broke below 1.3855, the pair has roughly been moving within a bearish channel until the depicted uptrend line came to meet the pair roughly at 1.3700-1.3680 enhancing this price zone as significant intraday demand. This led to the recent bullish impulse above 1.3810 and 1.3880.
For the bulls, price level of 1.3880 remains the nearest DEMAND level for them. It should be watched for a possible BUY position at retesting.
Finally, the last bottom established around 1.3810 could achieve higher high above 1.3880. However, the current levels correspond to the upper limit of the ongoing bullish channel.
This may lead to a corrective movement towards 1.3880 before further bullish spikes can take place.
