The EUR/USD pair has been finding solid Supply around 1.3400. The previous weekly candlestick had a small bullish body representing failure of the bulls to close above the high of the preceding weekly candlestick at 1.3380, which applied bearish pressure again in the pair during last week, despite the bullish closure of the previous weekly candlesticks.
Last week, the EUR/USD pair managed to have a bearish engulfing Weekly candlestick, which was formed by the strong bearish momentum witnessed especially on Thursday supported by the fundamental data about inflation data in Germany representing deterioration.
The price level of 1.3180 (previous week's low) was visited quickly where the SMA-100 comes to meet the pair roughly.
As depicted in the chart, Monday's daily candlestick remains an inside bar, the low of which has been broken down on Tuesday. However, lack of bearish momentum was apparent this week untill obvious bearish candlestick was expressed yesterday opening the way directly towards 1.3110.
Yesterday, the main event was the ECB meeting in the afternoon, which had discussion about reducing interest rates, more than the previous month, due to sudden rise of the economic indicators and decline in the pace of excess liquidity.
Yesterday, the euro gained some steadiness against the U.S. dollar after the release of the disappointing U.S. trade balance data before positive fundamental data from the U.S. was announced today.
Technically, the broken bullish channel led to price decline towards 1.3170 which is the nearest demand level to meet the pair. That is why, fixating below it will probably bring bearish pressure to the market towards the next demand level located around 1.3060.