FX.co ★ EUR/USD intraday technical levels and trading recommendations for July 26, 2013

Consolidation above the previously broken uptrend line goes on this week too after the pair established a consolidation range between 1.3060 and 1.3180.

The weekly candlestick came bullish for the 2nd week in a row closing at 1.3140 after the pair found strong demand at 1.3060-1.3075 corresponding to SMA 100 and the lower limit of congestion zone.

The next supply zone is located around 1.3230 (previous top established in May) being tested today where price action should be watched especially after the EUR pair expressed daily closure above 1.3180 on Monday.

The congestion zone is more obvious on the 4H chart where a bullish trial to step above the upper limit 1.3180 took place on Tuesday.

The EURO pair was not expressing strong bullish steam after bullish breakout took place yesterday. However, success to consolidate above 1.3180 successfully pushed the pair towards projection target roughly located at 1.3277.

Intraday demand zone is located around 1.3125 which corresponds to mid-range support, breakdown of which will delay further bullish momentum in the short term.

Fundamentally, EU sources confirmed that the Greek aid estimated at 2.5 billion euros was approved at a special conference held between financial officials of the European Union on Friday. However, the euro did not react significantly with the news, as the final report of the Tripartite Commission implicitly indicates that Greece has identified the following assistance share.