EUR/USD: Resistance Area Intact Thus Far
EUR/USD faded last Friday close to its resistance area defined by 1.2998 (22/02/2013 high) and 1.3029 (14/05/2013 high). An hourly support can be found at 1.2904 (24/05/2013 low). Another support is at 1.2822 (23/05/2013 low).
A test of the strong support area between 1.2746 and 1.2662 is expected as long as prices remain below the resistance at 1.3029 (see double-top formation).
In the medium-term, the recent price action from 1.2746 is viewed as a corrective phase within a larger downtrend. The recent new lows below 1.2955 suggest the end of the rebound and a minimum return towards the key support at 1.2662 (13/11/2012 low).