EUR/USD: Testing The Key Support Area Around 1.3462
EUR/USD has declined sharply and is now challenging the key support area defined by 1.3462 and the rising channel (see also the 38.2% retracement). A short-term bounce is likely. Hourly resistances can be found at 1.3567 (intraday high) and 1.3590 (01/11/2013 high).
In the longer term, the sharp decline below the support at 1.3651 from deep overbought conditions suggests that a significant top has likely been made at 1.3832 (25/10/2013 high). A decisive break of the strong support at 1.3462 (see also the rising channel) would confirm the start of a new phase of weakness.