EUR/USD: Genuine Breakout To The Upside?
EUR/USD has risen sharply, moving above the resistance a 1.3845. However, the failure to hold above this level suggests a potential false breakout. A resistance now lies at 1.3876. An initial support can be found at 1.3825 (intraday high). Other supports stand at 1.3749 and 1.3643. Another resistance is at 1.3948 (17/03/2014 high).
In the medium-term, the break of the support at 1.3834 (11/03/2014 low, see also the rising channel) coupled with general overbought conditions favour a move lower towards the support at 1.3643. The recent high at 1.3967 is likely to act as a strong resistance.