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During the previous week EUR/USD had gone as high as 1.3403. A pair managed this break first time since March 1st 2012 but could not sustain it’s upward gains and fell into a volatile sideways move. The second attempt to break over 1.3400 was made on Friday, January 18 but the pair failed at 1.3398.

Resistance at the upper trend line

Since mid-July 2012 EUR/USD has been mainly moving within a rising trend line channel. There was one break of this channel during September 2012 and that time a strong upward jump of nearly 500 pips was witnessed. The fall from there had put the currency pair back within the same channel.

Interestingly the current resistance was again faced near the upper trend line of the same channel. As per ForexAbode’s technical analysis a consolidation towards 1.3130/1.3140 may be on the way.