EUR/USD Tentatively Stalls Bearish Correction

<p>EUR/USD (daily chart) as of February 11, 2013 has tentatively stalled in its bearish correction of the last week. This correction brought the price down […]</p>

EUR/USD (daily chart) as of February 11, 2013 has tentatively stalled in its bearish correction of the last week. This correction brought the price down substantially from its 14-month high slightly above strong 1.3700 resistance in the beginning of the month. Although this correction has been significant, it only represents approximately a 50% Fibonacci retracement of the last major bullish run (between 1.3000 in the beginning of January to 1.3700 in the beginning of February), thus far.

As price currently stands, fluctuating below 1.3400, EUR/USD is still well within the confines of a strong bullish trend that extends back to the 1.2040 area low in July of 2012. In the event of further weakening within the current bearish correction, key near-term support resides around the 1.3300 price region. A bounce at or above this area could once again prompt a trend move back up towards 1.3500 and then 1.3700. To the upside, a breakout above 1.3700 would be the key event to watch for, as it would signify and confirm a continuation of the entrenched bullish trend.

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