EUR/USD reversed higher three weeks back from around 1.2750 level, but recovery since early April still has a corrective look.

With that said, we think that move is complex correction and that larger trend will continue lower, especially if we consider a five wave decline from 1.3700.

If we are correct then current bullish leg should stop somewhere around current 1.3400 -1.3450 resistance area.

On the weekly time frame we are also observing a huge head and shoulders pattern, now right shoulders at resistance.

Forex Analysis by Gregor Horvat at ForexPros. com