EUR/USD extended sharply higher, as six central banks, reduced their USD funding costs to ease the debt crisis. The impact was very positive for investors around the world and has encouraged traditional "risk appetite" markets, such as EUR/USD, AUD/USD and S&P500 to turn back higher.
Expect the recovery to be limited into 1.3610, then 1.3730 and perhaps even 1.3850-90. Probability still favours a bearish reversal at these levels.
Meantime, support can be found at 1.3380 and 1.3146. A sustained close beneath 1.3146 (Oct swing low) will re-establish the larger downtrend from April and target 1.3000 (psychological level), then 1.2870 (2011 major low).