The single currency rebounded after yesterday's selloff to 1.3358, suggesting decline from last week's high of 1.3692 has possibly formed a temporary low and consolidation would be seen, however, as long as 1.3480/85 holds, another drop is still likely but loss of downward momentum should limit downside to 1.3341 and bring strong rebound later.    On the upside, only a breach of 1.3523 resistance would turn outlook bullish for a stronger retracement of fall from 1.3692 to 1.3564/70 n then 1.3600.