EUR/USD has broken to the upside out of itsrecent consolidation between 1.3780 (09/04/2014low) and 1.3906 (11/04/2014 high), opening theway for a test of the key resistance at 1.3967. Hourly supports can be found at 1.3906 (previousresistance) and 1.3865 (05/05/2014 low).
In the longer term, EUR/USD is still in asuccession of higher highs and higher lows.However, the recent marginal new highs(suggesting a potential long-term rising wedge)indicate an exhausted rise. As a result, we see amedium-term limited upside potential,especially given the key resistance at 1.3967(13/03/2014 high) and the increasing overboughtconditions.
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