EUR/USD: Approaching its Recent High
EUR/USD is consolidating after its sharp rise. The break of the resistance at 1.3122 is shortterm positive. However, a strong resistance lies at 1.3207 (11/07/2013 high). Hourly supports are at 1.3096 (intraday low) and 1.2994.
The sharp bounce near the support at 1.2746 (04/04/2013 low) is likely to lead to a phase of sideways moves in the next few weeks.
In the medium-term, the rise from 1.2746 (04/04/2013 low) is viewed as a corrective phase within a larger downtrend. Therefore, we eventually expect to see prices moving below the key support at 1.2662 (13/11/2012 low). The recent sharp rebound near the support at 1.2746 does not change this scenario.