EUR/USD: Challenging Support at 1.3524
EUR/USD remains in a corrective phase after its failed attempt to break the resistance at 1.3832 (25/10/2013 high), as can be seen by the recent lower lows. The support at 1.3524 is challenged. Other supports can be found at 1.3490 and 1.3400. Hourly resistances stand at 1.3583 (16/01/2014 low) and 1.3650 (16/01/2014 high).
In the longer term, the recent false breakout near the key resistance area defined by 1.3811 (11/12/2013 high) and the long-term declining trendline (around 1.3890) confirm a limited upside potential. We favour a gradual corrective phase towards the 200 day moving average (around 1.3330).