EUR/USD: The Bearish Breakout at 1.3190 Has Been Confirmed by USD/CHF
EUR/USD has broken its key support at 1.3190 (see also 38.2% retracement of the previous rise). The confirmation by USD/CHF (break of the key resistance at 0.9395) strengthens the bearish stance. Support stands at 1.3067 (18/07/2013 low) and 1.2994. A break of the resistance at 1.3255 would negate the short-term bearish structure.
A potential medium-term top has been made at 1.3452. The break of the support at 1.3190 favours a medium-term bearish stance. However, we would thus far not expect a medium-term downside risk lower than the strong support area between 1.2746 (04/04/2013 low) and 1.2662 (13/11/2012 low).
We are raising our stop-loss to 0.9058 from 0.9004.