FX.co ★ EUR/USD intraday technical & fundamental review for May 3, 2013

On the daily chart, the EUR/USD pair pursues the continuation of the Flag pattern after the bullish impulse was initiated at 1.2750 on April 4th.

A breakthrough above 1.3100 took place on Tuesday which confirmed the pattern to have final projection target at 1.3400.

An important supply zone located at 1.3190-1.3200 and established on April 16 was mentioned to be watched. It provided significant resistance for the pair pushing the pair back again below 1.3100.

On the 4H chart the EUR/USD pair has been consolidating within the depicted movement channel, the upper limit of which has been broken through obviously on Tuesday.

Important support level is located around 1.3060-1.3080 which constitute a prominent demand zone to be watched for price action. Retesting of which will probably provide a valid BUY entry for those who missed the initial breakout to be targetting 1.3190, 1.3250 and finally 1.3400 while SL should be located below 1.2990.

Fundamentally, unemployment rate fell in the United States in April, which was contrary to expectations, according to data released on Friday.

Another good thing for the USD today is the change in the non-agricultural sector employment, which rose more than expected.