EUR/USD: Grinding Higher
EUR/USD's rise is still viewed as a short-term rebound and is now close to the resistance area defined by the 61.8% retracement at 1.3627 and 1.3651 (21/10/2013 low). An initial support lies at 1.3558 (27/11/2013 low). Other supports are at 1.3490 (25/11/2013 low, see also the rising trendline) and 1.3400 (21/11/2013 low).
In the longer term, the decisive break of the strong support at 1.3462 (see also the rising channel) suggests that a significant top at 1.3832 has been made and favours the start of a new phase of weakness. A gradual decline towards the key support at 1.3105 (06/09/2013 low) is likely.