EUR/USD made a sharp bearish intradayreversal near the key resistance at 1.3967yesterday. The support at 1.3865 (05/05/2014low) has been broken, negating the short-termbullish momentum. A further decline towards thesupport at 1.3780 (09/04/2014 low) is likely. Aninitial support lies at 1.3812 (02/05/2014 low). Aresistance stands at 1.3906 (11/04/2014 high).
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. Furthermore, thesuccessful test of the resistance at 1.3967coupled with general overbought conditionsfavour a phase of weakness. A key supportstands at 1.3643 (27/02/2014 low).
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