Having a massive swing to the downside between 1.4245 - 1.2622, EUR/USD currency pair is now testing 38.2% Fibonacci level at 1.3237.
Previous visits to this resistance level took place this month with obvious bearish reaction with a possible Head & Shoulders reversal pattern in progress.
Also the pair is testing the upper limit of the drawn sideway channel around the same price level.
Reversal of the upper limit of the channel will push the pair to test the lower limit around 1.2970. However its obvious break will make the forming pattern more likely a Flag continuation pattern.
The EUR/USD is showing obvious bearish reaction towards 38.2% Fibonacci level & the upper limit of the drawn channel.
This enhances the bearish view as long as the pair is unable to step above 1.3322.
Price level 1.3240 is considered a good intraday resistance which should keep price trading below it if the bears are strong enough to initiate a push to the downside today.
Break & Fixation above 1.3325 invalidates the bearish scenario for the time.
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