EUR/USD Continues Testing Channel Lower Border

EUR/USD (daily chart as of November 20, 2013) has attempted to challenge the lower border of the medium-term uptrend channel (bold blue parallel lines on chart) for six trading sessions since November 13, and in the meantime, has managed to maintain a steep, short-term uptrend (red uptrend line on chart) that started on November 7.

The pair is currently trading between those two trend lines, with an overshoot today reaching a high of 1.3576 and a quick retreat back down into the range again. The recent bounce off 1.3295 has been stronger than what had been expected, due to the strong support from the daily EMA 200 and also from the long-term downtrend line (bold red line on chart).

Watch closely the price action against the key 1.3547 level, which was the last significant high point of the prior downtrend that started from October 25. Price would be under pressure if it is unable to clear the 1.3547 barrier with follow-through confirmation. If 1.3547 serves as strong resistance, the currency pair could turn down and potentially test 1.3295 again.

Support levels below:
1st support: short-term uptrend line
2nd support: 1.3440 (November 4 low)
3rd support: 1.3390 (November 13 low)
4th support: 1.3295 (November 7 low) or daily EMA 200

Resistance levels above:
1st resistance: lower boarder of the uptrend channel or 1.3576
2nd resistance: 1.3645/50 (multiple highs and lows)
3rd resistance: 1.3710 (February 1 high)
4th resistance: 1.3830 (October 25 high)