EUR/USD: Making a Significant Lower Low
EUR/USD has broken the support at 1.3621. Coupled with the false breakout of the key resistance area between 1.3811 (11/12/2013 high) and 1.3832, a medium-term double-top is likely underway. The implied downside risk is at 1.3440. Supports stand at 1.3524 and 1.3490 (25/11/2013 low). The short-term technical structure is negative as long as prices remain below the resistance at 1.3677.
In the longer term, the recent false breakout near the key resistance area defined by 1.3811 and the long-term declining trendline (around 1.3892) confirm a limited upside potential. We favour a corrective phase towards the 200 day moving average (around 1.3321).