FX.co ★ EUR/USD intraday technical and fundamental review for May 20, 2013

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 revived a "Double-Top" pattern on the daily chart that has final target at 1.2680.

EUR bears are being interrupted at Intraday support (1.2800-1.2830), failing to have daily/weekly closure below 1.2800 indicates bullish rejection.

A visit towards the previous low at 1.2760 is not excluded yet.

A strong demand level is located at 1.2750 (corresponding to a previous low that was established on April 4). It is expected to be visited in case of 1.2800 breakdown.

Price Levels 1.2950 and 1.2910 (broken supports) will probably provide Intraday resistance for the EUR/USD pair to maintain any bullish trials in the short term. Hence, a valid SHORT position may be taken there.

The EUR/USD pair is still bearish which needs 1.2800 breakdown. However, bullish retracement towards 1.2950 is not excluded to bring more SELLERS before further decline.