EUR/USD: Weak Bounce Thus Far
EUR/USD bounced yesterday near the key support area defined by 1.3462 and the rising channel (see also the 38.2% retracement). However, the rise has thus far been unimpressive, suggesting persistent selling pressures. 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.