The EUR/USD broke above a double bottom in Tuesday’s US session, but stalled near 1.3650 and came back to test the broken resistance as support in the 1.3550-1.3560 zone. The bearish price action was seen decelerating as it tested this zone, and the reaction was a bounce that had relatively more strength than the decline. This confirms respect of the double bottom, and suggests at least another leg in the current correction rally. The 1.37 level is the next test, as the market gear up for the US session. It is near 78.6% retracement of the decline since the FOMC announced operation twist. It’s not about that this ... (full story)