EUR/USD has broken to the upside out of its recent consolidation between 1.3780 (09/04/2014 low) and 1.3906 (11/04/2014 high), opening the way for a test of the key resistance at 1.3967. Hourly supports can be found at 1.3906 (previous resistance) and 1.3865 (05/05/2014 low).

In the longer term, EUR/USD is still in a succession of higher highs and higher lows. However, the recent marginal new highs (suggesting a potential long-term rising wedge) indicate an exhausted rise. As a result, we see a medium-term limited upside potential, especially given the key resistance at 1.3967 (13/03/2014 high) and the increasing overbought conditions.

Daily Technical Report