FX.co ★ EUR/USD intraday technical and fundamental review for May 24, 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 support zone around 1.2950 revived a "Double-Top" pattern on the daily chart that still has final target at 1.2680.

A stronger than expected German IFO survey for May and a weaker dollar have boosted the EUR currency this morning, the pair is now re-testing supply zone at 1.2980-1.3000.

A bullish Head and Shoulders pattern was mentioned on the 4H chart yesterday which achieved its target around 1.2995 so quickly. However, it is important to note that price levels 1.2950-1.3000 (broken support) provided Intraday resistance for the EUR/USD pair. This bearish rejection will probably lead to another down swing targetting 1.2790 then 1.2750.

The EUR/USD pair is still bearish which needs 1.2790 breakdown to resume the bearish movement towards 1.2750-1.2730 initially then 1.2650. However, failure of the pair to breakdown 1.2790 invalidates the bearish scenario in the short term.