EUR/USD: Retracing its Recent Bounce
EUR/USD made a bullish intraday reversal on 5 June. However, the lack of follow-through and the current deep retracement suggest persistent selling pressures. Resistances can be found at 1.3677 and 1.3734 (19/05/2014 high). Hourly supports now lie at 1.3583 (09/06/2014 low) and 1.3503 (05/06/2014 low).
In the longer term, the break of the long-term rising wedge (see also the support at 1.3673) indicates a clear deterioration of the technical structure. The long-term downside risk implied by the double-top formation is 1.3379. Key supports can be found at 1.3477 (03/02/2014 low) and 1.3296 (07/11/2013 low).