EUR/USD's bounce is thus far unimpressive. Monitor the test of the support area between 1.3059 and 1.3042. A break of the hourly resistance at 1.3151 is needed to improve the short-term technical configuration. Another resistance can be found at 1.3254.
In the medium-term, the recent price action from 1.2746 (04/04/2013 low) is viewed as a corrective phase within a larger downtrend. The high at 1.3417 (19/06/2013 high) following Bernanke's comments is a significant top. Coupled with the short-term overbought conditions, a new bearish phase is likely underway. A minimum medium-term move towards the support at 1.2797 (17/05/2013 low) is expected.
