The reversal pattern in EUR/USD is very significant given how close it came to reaching psychological 1.40 resistance, and the fact that it occurred on a new trend high, says Goldman Sachs. "It also nearly tested two trendlines which are extended across the highs since Oct. ’13 and Feb. ’12 (1.4013-1.4018) and act as a potential wedge resistance," GS notes. "The first clear support stands now down below 1.3788. Thereafter, the interim low from Apr. 4th and the Nov. ‘13 uptrend converge at 1.3674-1.3673," GS adds. "Nevertheless, until the EUR/Linked basket starts to turn or Spanish/Italian yields decelerate it ... (full story)