The EUR/USD trades in a tight 40 pips range in between 1.3240/80, after surging over 200 pips yesterday. And with 1.3300 around the corner, is time to consider a probable break above the level, that caped the upside for the past 10 months. In the short term, the movement seems limited, as 4 hours chart shows indicators turning flat in overbought readings, losing the upward potential; the pair may correct lower more if 1.3230 area gives up, 78.6% retracement of its latest daily fall. In the daily chart however, the upward potential increases, with chances of a break triggering more euro demand. In that case, 1.3370 is immediate resistance, intraday highs and lows from March 2012, while once above 1.3485, 2012 year high is next.
Below 1.3230 mentioned Fibonacci support, profit taking can take the pair lower, up to 1.3180, 61.8% retracement of the same rally. View Live Chart for EUR/USD