EUR/USD moved significantly higher last Fridayand is now challenging the resistance at 1.3677(see also the 38.2% retracement). A short-termbullish flag could be underway, which wouldconfirm the invalidation of the medium-termdouble-top. Hourly supports stand at 1.3656(intraday low) and 1.3633 (09/01/2014 high).Hourly resistances lie at 1.3687 (10/01/2014 high)and 1.3775 (02/01/2014 high).
In the longer term, the recent false breakoutnear the key resistance area defined by 1.3811(11/12/2013 high) and the long-term decliningtrendline (around 1.3890) confirm a limitedupside potential. We favour a gradual correctivephase towards the 200 day moving average(around 1.3330).
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MIG Bank