FX.co ★ EUR/USD intraday technical levels and trade recommendations for July 12, 2013

On Friday, the EUR/USD pair expressed quite significant bearish weekly closure at 1.2830 after hiting the previously mentioned demand zone extending between 1.2750-1.2820.

This demand zone corresponds to a previous low established in March as well as another buttom established in May.

It was expected for the pair to gain some recovery off this support zone that pushed towards 1.3000, which was bypassed towards 1.3110 then 1.3200.

It's important to note that daily closure below 1.3050 enhances the bearish view and supports resuming the ongoing bearish movement. Otherwise, the way towards 1.3225 remains open for further re-testing.

Signs of bullish reversal appeared on Wednesday, which allowed bulls to benefit from this expected correction move towards 1.3000 with SL as 4H closure below 1.2750.

Importance of 1.3050-1.3100 is manifested on the 4H chart as it corresponds to SMA 100, previous congestion zone and backside of broken uptrend.

4H closure below which opens the way towards the recent lows around 1.2800 again.