FXstreet.com (Barcelona) - EUR/USD has reversed its upward trend after reaching a new intra-day high at 1.2760, to drop below 1.2735 on a bearish reaction to dreadful Philadelphia Fed Business Index.

The Euro has lost support level at 1.2735 and is getting back into the downward trending channel off 1.3093 (Feb 9 high). On its way to 1.2700. If support level at 1.2700 gives, the Euro could decline down to 1.2675 losing half of the value gained during today's rally.

On the upside, EUR/USD could bounce up at 1.2700, and, past 1.2735 set another rally towards 1.2765.