The price zone of 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 leading to obvious breakdown of the depicted bullish trend line.
Bearish pressure which originated off 1.3650 has applied enough pressure on the price level of 1.3560 (corresponding to the previous prominent bottom) exposing the price levels around 1.3360 where bullish recovery was witnessed last week.
However, this week, the EUR/USD pair has already pushed lower towards 1.3330 (prominent bottom established on November 8, 2013), following the release of the initial readings of the Italian GDP, which declined by -0.2%. Bullish price action is manifest during the last few daily candlesticks including today's one.
Bullish fixation above 1.3440 is essential to acquire momentum strong enough to initiate a bullish corrective move towards 1.3530.
Breakdown of 1.3500 invalidated the bullish structure allowing the bears to pursue towards the price level of 1.3420.
The short-term bearish trend remains intact as long as the bears keep defending the price zone of 1.3420-1.3450.
On the other hand, bullish fixation above 1.3430 ensures a deeper bullish correction towards 1.3520 and 1.3550.
In case the bears keep applying significant bearish pressure, the EUR/USD pair has Intraday DEMAND levels located around 1.3325, 1.3290, and 1.3275 respectively.
