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As noted a couple days ago, the 1.40 handle has in fact served as resistance, and we drifted lower on Tuesday, and should be considered to be healthy by bullish traders as the recent action has been rather steep in its incline.
The pair looks like it wants to drift lower and find support at 1.38, and any new longs should wait until we either see support hold at that level, or fresh new highs in the form of a daily close above 1.40 or higher. A break down below 1.38 could signal a run back to 1.3450, and a new high would have the market targeting 1.42 and 1.45, respectively.
