FX.co ★ EUR/USD intraday technical levels and trading recommendations for August 19, 2013

Consolidation above the previously broken downtrend depicted on the chart goes on for the third day in a row. This took place after finding solid supply around 1.3200.

The weekly candlestick was a pin-bar representing hesitation after failing to step above the previous weekly high 1.3400

The EUR/USD pair stalled on Friday, forming a shooting star just below key 1.3400 resistance without actual testing of the level.

The market is currently trading between supply around 1.3400 and demand down around 1.3200.

We could potentially see a rebound from Friday’s high, back down toward support. However, depending on the huge bullish momentum witnessed on Thursday, the picture is a little neutral at this time and we could also see the market consolidating or slowly push higher.

In general, as long as the market is contained below 1.3400 on a daily basis, there is potential for a reverse down towards demand around 1.3200.

Fundamentally, the euro rose against the U.S. dollar on today's trades after the German central bank said the European Central Bank’s obligation to keep borrowing costs low does not exclude higher interest rates to restrain inflation.