EUR/USD continues to move sharply higher. The strong resistance at 1.3004 has been broken. The next strong horizontal resistance is at 1.3284 (see also down trendline). Hourly support is at 1.3022.
The lack of base formation or sell-off suggests that the current strength in EUR is a rebound within an underlying downtrend. Given the resistances area between 1.3150 and 1.3491 (38.2% and 50% retracements of the decline from May 2011 to July 2012), we are waiting for signs of weakness to initiate a short EUR position.
