EUR/USD Finds Support at Daily EMA 100

EUR/USD (daily chart as of January 13, 2014) broke down through the daily EMA 50 on January 3, with a strong bearish candlestick that closed well below the moving average. It was the first time since late November that the currency pair traded down through the daily EMA 50. Price then dropped lower until it bounced right above the daily EMA 100 on January 9 and climbed up above the daily EMA 50 once again.

It appears that current price is finding support at the daily EMA 100 that served as strong support on November 20 and 21 (purple arrow on chart), and is testing the daily EMA 50 that acted as strong resistance from November 4 to 7 (red arrow) and as strong support on December 4 (green arrow). If price can hold above the daily EMA 50, further upward movement may be expected ahead with a potential retest of the key resistance level at 1.3830.

Support levels below:
1st support: 1.3620 (December 20 low) or daily EMA 50
2nd support: 1.3520/30 (December 3 and 4 low) or daily EMA 100
3rd support: 1.3400 (November 21 low) or daily EMA 200

Resistance levels above:
1st resistance: 1.3710 (multiple highs and lows)
2nd resistance: 1.3830 (key resistance level)
3rd resistance: 1.3890 (December 27 high)