EUR/USD: Retracing its Recent Decline
EUR/USD continues to retrace its decline, which started on 3 October at 1.3646. The resistance implied by the declining trendline is challenged. Another resistance is at 1.3607. An initial support can be found at 1.3523 (intraday low). Another support lies at 1.3486 (09/10/2013 low).
In the longer term, a move towards the resistance at 1.3711 (01/02/2013 high) is expected as long as the support at 1.3462 holds. However, the increasing overbought conditions and the other key resistance given by the longterm declining trendline (around 1.4000) should put a cap to the medium-term upside potential.