EUR/USD has broken a significant support at 1.3257 (16/01/2013 low, see also the rising trendline). However, the key support at 1.2998 (04/01/2013 low) has thus far held. The hourly resistance at 1.3145 (22/02/2013 low) is challenged. Another resistance is at 1.3319 (25/02/2013 high).

In the bigger multi-week time frame we note that the higher low in July 2012 (compared to July 2010) and the recent new high above the strong resistance at 1.3487 (24/02/2012 high) indicates an improvement in the underlying trend. However, a failure to break the resistance at 1.3319 would favour a bearish head and shoulders formation.

Daily Technical Report