August 28, 2013 – EUR/USD (daily chart) has once again retreated from key resistance around the 1.3400 level after having made a temporary breach above that level last week. The 1.3400 price region has served as key historical resistance, most recently in June when the pair pivoted down from that area, reversing a steep bullish leg. The noted temporary breach last week reached a high of 1.3450 before promptly retreating. Since then, the pair has consistently bumped up against 1.3400, unable to make any further significant breaches. Today’s price action has seen a swift retreat, moving back down to hit a low around 1.3300 support. A breakdown below this 1.3300 level would give further indication of a potential price turn to the downside, thereby continuing the trading range that the pair has been mired in for the past several months. Another breakout above 1.3400 should meet strong and immediate resistance around the key 1.3500 level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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