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 at the price level of 1.3560 (corresponding to the previous prominent bottom).
Since then, the pair has been downtrending within the depicted bearish channel until the price level of 1.3330 where a narrow range congestion zone was established.
Shortly after, bearish breakout was expressed. Quick decline towards the price levels around 1.3150 took place following a bearish gap.
Further price action should be considered knowing that the pair is currently testing the lower limit of the channel. High probability of reversal exists.
The short-term bearish trend remains intact as long as the bears keep defending the price zone of 1.3420-1.3450.
In case the bears keep applying significant bearish pressure, the EUR/USD pair has Intraday DEMAND zone located between 1.3200 - 1.3150 respectively (Fibonacci Expansion Levels).
The pair has been trading between these levels during the previous week. However, daily closure should be considered to determine if the current breakdown will persist or a corrective move towards 1.3300 will take place.
Bullish fixation above 1.3215 is essential to acquire a momentum strong enough to initiate a bullish corrective move towards 1.3295 and 1.3330 as well.
