EUR/USD: Grinding Higher
EUR/USD is consolidating after its sharp rise. Monitor the horizontal range between 1.2994 and 1.3207. The initial resistance at 1.3177 (17/07/2013 high, see also the declining trendline) is challenged. An initial support can be found at 1.3067 (18/07/2013 low).
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.