EUR/USD has thus far failed to significantlyretrace its decline from the peak at 1.3893. As aresult, a test of the recent low at 1.3549(09/01/2014 low) is favoured. Another supportstands at 1.3524. A break of the resistance at1.3699 is needed to suggest a pickup in buyinginterest. An initial resistance lies at 1.3650(16/01/2014 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