EUR/USD has broken the support area defined by 1.3462 and the rising channel (see also the 38.2% retracement), confirming that a significant top at 1.3832 has likely been made. However, yesterday's reversal suggests persistent shortterm buying interest, suggesting that a shortterm bearish flag formation is unlikely. The shortterm technical structure is negative as long as prices remain below the resistance at 1.3548. An initial resistance lies at 1.3449 (05/11/2013 low). A support is at 1.3296 (intraday low).

In the longer term, the decisive break of the strong support at 1.3462 (see also the rising channel) confirms the start of a new phase of weakness. A gradual decline towards the key support at 1.3105 (06/09/2013 low) is likely.

Daily Technical Report