FX.co ★ Intraday technical levels and trading recommendations on EUR/USD for July 21, 2014

The price zone of 1.3800-1.3880 (dotted on the chart) provided considerable SUPPLY for the EUR/USD pair. This price zone managed to pause the bullish momentum that originated off the depicted bullish trend line.

A Double Top pattern was formed after the neckline located at 1.3700 got broken down. Projection targets have already been hit shortly after.

Previous prominent bullish engulfing daily candlesticks emerged off 1.3500 (the lower limit of the ongoing channel) thus fixating again above 1.3560 (the key level corresponding to the previous prominent bottom).

As long as the backside of the broken bearish channel keeps holding the price above, the bulls will keep pushing higher towards 1.3640 and probably 1.3740.

The EUR/USD pair has been facing difficulty to fixate above the key level around 1.3640-1.3660 then successive bearish engulfing candlesticks originated off this price zone.

Bearish pressure which originated off 1.3650 has been applying pressure on 1.3560 (the key level corresponding to the previous prominent bottom) for two days resulting in a daily closure below this price level exposing 1.3500 for retesting.

Bullish fixation above 1.3560 then 1.3640 is a must to pursue towards further bullish targets.

As long as the bulls keep defending the demand zone between 1.3500-1.3475, the bullish momentum is most likely to pursue towards further targets.

On the other hand, breakdown of 1.3500 invalidates the bullish structure allowing the bears to pursue initially towards the price level 1.3420.

Bullish pressure is expected to be applied around the current prices provided that the bears fail to fixate below 1.3500 on the daily basis.