FX.co ★ Intraday technical levels and trading recommendations on EUR/USD for September 23, 2014

The price zone of 1.3800-1.3880 (dotted on the chart) managed to pause the previous bullish momentum, thus initiating the current downtrend within the depicted bearish channel.

Several congestion zones were established around the price levels of 1.3515 and 1.3335 before further bearish decline could take place.

On Wednesday, the EUR/USD pair showed bullish recovery around price level of 1.2860. Successive bullish daily candlesticks were expressed around these price levels.

For three days now, the pair has established one more congestion zone. A high incidence of bullish reversal is present as long as the daily low around 1.2820 remains defended by the bulls.

However, the bearish engulfing daily candlestick for Friday signals severe weakness of the bulls. This enhances the bearish trend towards 1.2750 and 1.2680 as initial target levels.  

The current short-term bearish trend remains intact as long as bears keep defending the price zone around 1.2995 (the recent weekly high). Moreover, another descending high was established Today around 1.2920.

Bearish slide below 1.2820 invalidates the possibility of a bullish reversal. Thus, bearish decline towards 1.2750 and 1.2680 would be expected then ( A bearish Flag pattern ).