The price zone 1.3800-1.3880 (dotted on the chart) provided considerable SUPPLY for the EUR/USD pair. This price zone managed to pause the bullish momentum that originated off the depicted bullish trend line.
Thus, a Double Top reversal pattern was established with a neckline located at 1.3700. This reversal pattern has already hit its projection levels.
On the other hand, we should highlight Thursday and Monday's bullish engulfing daily candlesticks which emerged off 1.3500 (the lower limit of the ongoing 4H channel) thus fixating again above 1.3560 ( Key-Level corresponding to previous prominent bottom ).
Thus, the EUR/USD bulls finally achieved bullish breakout above 1.3560 thus escaping the previous congestion zone between 1.3560 - 1.3480.
The pair would probably visit the upper limit of the depicted channel around 1.3650-1.3660 which corresponds to the breakout projection target as well.
Price action should be watched around 1.3660 to determine the next destination of the EUR/USD pair.
