FX.co ★ EUR/USD intraday technical levels and trading recommendations for September 4, 2013

The EUR/USD pair has been finding solid Supply around 1.3400. The previous weekly candlestick had a small bullish body representing failure of the bulls to close above the high of the preceding weekly candlestick at 1.3380, which applied bearish pressure again on the pair during last week, despite the bullish closure of the preceding weekly candlesticks.

Last week, the EUR/USD pair managed to have a bearish engulfing Weekly candlestick, which was formed by the strong bearish momentum witnessed especially on Thursday supported by the fundamental data about inflation data in Germany representing deterioration.

The short-term view turned to be bearish towards 1.3180 (previous week's low) where the SMA-100 comes to meet the pair roughly.

As depicted on the chart, Monday's daily candlestick remains an inside bar, the low of which has been broken down yesterday. However, the daily closure (long lower shadow) represents lack of bearish momentum with this daily closure around 1.3170 level.

The euro gains some steadiness against the U.S. dollar after the release of the disappointing U.S. trade balance data, which renewed concerns related to the probability of the existence of a military strike by the United States on Syria.

Technically, the broken bullish channel led to price decline towards 1.3170 which is the nearest demand level to meet the pair. That is why, fixating below it will probably bring bearish pressure to the market towards the next demand level located around 1.3060. However, the pair has a higher probability to achieve some recovery off 1.3170 as long as the current low at 1.3140 remains unbroken.

Price Level 1.3230 would be an appropriate target level for a possible retracement.