FX.co ★ EUR/USD intraday technical and fundamental review for May 15, 2013

Last week, we talked about consolidation of the pair within the price range 1.2950 -1.3240 and the importance of breakout off this zone for the liberation of the pair.

Breakdown of the most prominent support zone around 1.2950 also revives a "Double-Top" pattern on the daily chart that has final target at 1.2680.

The way towards the previous low at 1.2760 may be open now. However, EUR bears may be interrupted by corrective movement due to oversold short-term charts.

The nearest support level is located at 1.2835 as depicted on the chart.

A stronger demand level is located at 1.2750 (corresponding to a previous low that was established on April 4) is expected to be visited in case of 1.2835 breakdown.

Price Levels 1.2950 and 1.2910 (broken supports) now probably provide Intraday resistance for the EUR/USD pair to maintain any bullish trials in the short term.

Fundamentally, price decline that has taken place this week is due to negative domestic economic data as the Q1 GDP report is expected to confirm the 6th consecutive quarter of negative shrinkage.