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 ongoing bullish momentum above the depicted bullish trendline.
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's bullish engulfing daily candlestick which emerged off 1.3500 ( may pause the ongoing bearish momentum ). Now the pair is roughly trapped within a congestion zone extending between 1.3560 and 1.3700.
The bulls topped at 1.3950. However, these levels corresponded to the upper limit of a bullish channel which applied significant bearish reaction.
A strong corrective movement towards 1.3850 and 1.3800 was executed immediately as expected. This led again towards 1.3770 and cleared the way towards 1.3690 (previous prominent bottom).
The nearest DEMAND level to meet the pair is located around 1.3560 where a prominent bottom was established in February.
As expected in previous articles, price zone of 1.3560-1.3520 offered a valid BUY opportunity that has obvious bullish targets at 1.3690-1.3710 ( the upper limit of the congestion zone ).
Success of the bulls to fixate above 1.3640-1.3650 ( recent broken bottoms ) exposes 1.3690-1.3700 and possibly 1.3750 where the most prominent SUPPLY level is located.
Thus, a bullish breakout above 1.3650 signals another bullish position with SL located just below 1.3600 with the previously mentioned bullish targets.