The price zone of 1.3560-1.3600 represented a valuable supply zone that kept the price below for almost two months. However, lack of bearish follow-up was witnessed around 1.3480. Instead, a significant bullish rejection was expressed leading to a Flag continuation pattern. According to the final readings of the European Statistical Office disclosed one week ago, the European inflation was at 1.1% in September, in line with preliminary projections, while it settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22. Previous daily candlesticks represented indecision around 1.3800 strongly suggesting bearish retracement towards 1.3700 and then 1.3650 which took place shortly after. The price zone extending between 1.3550-1.3460 was considered as a valuable supply zone. This zone failed to provide a strong support. Instead, bearish breakdown took place with a quite strong momentum leading to breakdown of 1.3400 as well. Price zone 1.3300-1.3330 provided strong demand for the pair pushing it higher above 1.3400 - 1.3450 (prominent technical levels) Persistence of the current movement to get above the 1.3450 level, allowed the pair to reach the next supply level around 1.3560-1.3600 where the price action should be watched. Based on the market analysis, there is a valid sell entry around 1.3560-1.3600 with SL located above 1.3660. However, today's daily closure should be watched as a daily closure above 1.3580 opens the way for further bullish targets around 1.3650, and then 1.3700.
