The near 400-point bounce in EUR/USD is still intact, but the currency cross shows little inclination to push towards the $1.39 level at the moment.
We have seen EUR/USD edge out of overbought territory on the hourly chart, but the highs just above $1.39 remain the target to beat at present. Now that $1.38 has been broken, previous resistance becomes support, which means that $1.3825-$1.3832 could see buyers creeping back in if this retracement moves lower in the near term.
With the uptrend intact in weekly, daily and hourly timeframes, it seems there remains an appetite to push EUR/USD higher. Should we see the $1.39 level taken out, the next resistance level would be the October 2011 highs towards $1.4290. This would be something in the order of a 3% move, but since February witnessed such a move it would not be entirely out of the question, particularly if we see risk appetite recover on a broad basis.