EUR/USD: Surge in Buying Interest
EUR/USD moved sharply higher yesterday, breaking its declining trendline. A break of the resistance at 1.3699 would open the way for further strength towards the resistance at 1.3819. Hourly supports can be found at 1.3625 (intraday low) and 1.3583 (22/01/2014 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) suggest a limited upside potential. We favour a gradual corrective phase towards the 200 day moving average (around 1.3350).