EUR/USD: Bearish Engulfing Pattern Casts a Negative Bias
EUR/USD completely retraced Tuesday's rise yesterday, validating a bearish engulfing pattern and calling for a short-term bearish bias. Hourly resistances can be found at 1.3102 and 1.3125 (50% and 61.8% retracement of yesterday's decline). Hourly supports are at 1.3002 (17/04/2013 low) and 1.2962 (08/04/2013 low).
In the longer-term, a significant top has likely been made at 1.3711 (01/02/2013 high). Therefore, the recent rise from 1.2746 (04/04/2013 low) is seen as a rebound within an underlying downtrend. A key resistance is at 1.3319 (25/02/2013 high).