The price zone of 1.3400-1.3460 represented a valuable supply zone that kept the price below for months. However, a significant bullish rejection was expressed around 1.3100 leading to a bullish breakout pattern. According to the final readings of the European Statistical Office disclosed two weeks 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 which initiated bearish retracement towards 1.3450 which failed to provide strong support, and then 1.3280 was tested shortly after. Price zone of 1.3280 - 1.3300 provided strong demand for the pair pushing it higher above 1.3400 - 1.3450 (prominent technical levels). Persistence of the current movement to push above 1.3450 level allows the pair to reach the next supply level around 1.3640 where the price action should be watched. Price level of 1.3640 corresponds not only to a prominent high established on October 7, but also to the upper limit of the ongoing bullish channel depicted on the chart. Based on the market analysis, there is a valid sell entry around 1.3600-1.3640 with SL as daily closure above 1.3670.
