EUR/USD has broken the support at 1.3508.Despite the current lack of follow-through, wefavour a bearish bias as long as prices remainbelow the resistance at 1.3573 (31/01/2013 high,see also the steep declining trendline). Supportscan now be found at 1.3477 and 1.3400 (see alsothe 200 day moving average). A key resistancestands at 1.3688 (28/01/2014 high, see also thedeclining channel).
The ECB meeting is likely to cause someintraday volatility.
In the longer term, the key resistance areabetween 1.3832 (25/10/2013 high) and 1.3893(27/12/2013 high, see also the long-termdeclining trendline) is likely to cap any priceappreciation. The recent technical deteriorationsfavour a gradual decline towards the support at1.3296 (07/11/2013 low).
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MIG Bank