FXstreet.com (Barcelona) - EUR/USD recovery has capped at 1.2686 and reversed breaching below 1.2660 support level so far and approaching intra-week low at 1.2629.

Bearish momentum seems increasing as the downtrend line from 1.2992 Feb 23 high tends to point sharper down, and if the Euro drops below 1.2629 it could advance towards Feb 20 low at 1.2565 would come into play, before, 1.2515 (Feb 18 low). Once beyond there, Euro would be at three-month low.

On the upside, above 1.2680 (session high) the Euro should get above 1.2700 in order to confirm a bottom at 1.2629. the Swiss e Trade Strategy Team sees that scenario highly unlikely: The current downmove in early European trading is losing some steam right now, with the pair priced at 1.2660. That is slightly above the 1.2650 intermediate support line, which we expect will be broken eventually today, after a short recovery not exceeding 1.2690.