EUR/USD has broken its recent low at 1.3539, confirming a short-term corrective phase. The second declining leg is now close to the key support at 1.3462. An initial support can be found at 1.3486 (09/10/2013 low). Hourly resistances are given by 1.3539 (previous support) and by the declining trendline (around 1.3589).

In the longer term, a move towards the resistance at 1.3711 (01/02/2013 high) is expected. However, the increasing overbought conditions and the other key resistance given by the long-term declining trendline (around 1.4000) should put a cap to the medium-term upside potential.

Daily Technical Report