In March, the failure of the bulls to fix above 1.3880 applied enough bearish pressure in the form of a bearish channel towards the recent demand zone around 1.3700.

At retesting of 1.3700, significant bullish pressure was applied pausing the recent slide off 1.3965 which led to another ascending impulse towards 1.3880.

On April 11, daily candlestick came as a bearish Doji indicating a lack of bullish momentum above 1.6880. This was followed by a bearish engulfing daily candlesticks aiming to apply bearish pressure on the price level of 1.3800 which is still offering support until today.

At the same time, several bullish attempts (including Tuesday's bullish spike) took place to step above 1.3850-1.3880. However, immediate bearish reaction is applied resulting in successive reversal daily candlesticks pushing again towards 1.3800.

On the other hand, a price level of 1.3800 has been providing bullish support so far. Wednesday and Friday's daily candlesticks are bullish engulfing daily candlesticks that originated off this level.

Since the EUR/USD pair broke below 1.3855, the pair has roughly been moving within a bearish channel until the depicted uptrend line came to meet the pair roughly at 1.3700-1.3680 enhancing this price zone as significant intraday demand. This led to the recent bullish impulse above 1.3810 and 1.3880.

For the bulls, the price zone of 1.3810-1.3785 remains the nearest demand zone which provided a valid buy entry previously. It corresponds to the lower limit of the ongoing consolidation range.

On the other hand, 1.3880 remains the nearest supply level for the bears. It should be watched for price action.

The last bottom established around 1.3810 is still failing to achieve higher high above 1.3880. This is an early sign of lack of bullish momentum. Bearish price action may suggest a possible bearish retracement towards the lower limit of the consolidation range.

A bullish breakout above 1.3880 opens the way for a bullish spike towards 1.3950 to take place shortly after.