The trendline drawn off the 1.4280 and 1.3785 levels was strengthened today by the stall around the 1.3400 level, the third though of the trendline.
While it is clear the euro is in the midst of a retracement of its month-long slide on Irish woes, a break above 1.3400 would signal the potential for a trend change.
1.3320/25 is shaping up as support in the near-term while the 1.3467/70 area is the next resistance point should the trendline give way near-term.
Keep watching those Spanish and Portuguese spreads. If they continue to contract, EUR/USD will gather strength and vice versa.
