EUR/USD's failure to push lower yesterday increases the chances of a move higher towards our target zone for short entry near 1.3300. Any near-term strength is not expected to break above the key 1.3711 annual high.

In the short-term a break under 1.2955 (24/04/2013 low) is required to turn the nearterm bias negative once again. We would expect strong resistance if a push higher to the 1.3300 region can be realised and for now would rather sell into strength instead of employing a momentum strategy.

In the longer-term, a significant top has likely been made at 1.3711 (01/02/2013 high). Therefore, the recent rise from 1.2746 (04/04/2013 low) is seen as a rebound within an underlying downtrend. A key resistance is at 1.3319 (25/02/2013 high).

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