The nearest SUPPLY zone is located between 1.3680 - 1.3730 which corresponds to the price zone between 50% and 61.8% Fibonacci levels.

On Tuesday, the pair expressed an Inverted Hammer daily candlestick while retesting 1.3680 (50% Fibonacci).

Fundamentally, industrial production in the euro area witnessed an unexpected decline of 0.7% on a monthly basis in December compared to its previous reading of 1.8%.

This contributed to the ongoing bearish impulse which took place yesterday towards 1.3570 corresponding to the uptrend line depicted on the chart.

The bulls found enough demand around 1.3570 to push again towards 1.3680 for another retesting.

Initial bearish target for this movement is located near 1.3530 (previously established bottom) as long as Fibonacci 50% remains defended by the bears.

As we can see in the chart, bulls pushed towards the price levels around 1.3737 where strong bearish rejection was expressed.

As expected, a corrective bearish movement towards 1.3500 took place shortly after.

The price zone of 1.3500-1.3470 provided considerable support for the pair pushing again towards 1.3670 (50% Fibonacci) which corresponded also to the upper limit of the ongoing bearish channel.

As mentioned above, the price level of 1.3680 provides a valid SELL entry. A Double Top reversal pattern is probably being established. A breakdown of 1.3570 confirms the pattern.

Initial target is located at 1.3520 then 1.3470. SL remains as 4H closure above 1.3680.