EUR/USD declined further yesterday and is now close to the key support at 1.3673 (see also the wedge formation). Given the recent sharp decline, a short-term phase of stabilisation is likely. Resistances can be found at 1.3775 (12/05/2014 high) and 1.3845 (09/05/2014 high).

In the longer term, EUR/USD is still in a succession of higher highs and higher lows. However, the recent marginal new highs (suggesting a potential long-term rising wedge) indicate an exhausted rise. A break of the key support area between 1.3673 (04/04/2014 low) and 1.3643 (27/02/2014 low) is needed to confirm a long-term bearish trend reversal (see potential double-top).

Daily Technical Report