FXstreet.com (Barcelona) - The EUR/USD regained on Friday all the ground lost on Thursday, bouncing back from intra-week low at 1.2721 on Thursday's early U.S. session. On a positive reaction to U:S. retail sales, the Euro rocketed 200 pips up to reach resistance level at 1.2935/45 area.
The Euro has returned to the horizontal channel within 1.2800 and 1.3070 where it has been trading for the last two weeks, with volatility diminishing. On the way up, Euro could find key levels at 1.2935/45 and above there 1.3070. On its way down, fall from 1.2850 could open the doors to intra week low at 1.2721.
Nicole Elliott, senior technical Analyst at Mizuho Corporate Bank observes the possibility of Euro trading above 1.30: Another small 'hammer/spike low' as the Euro holds inside a downward-sloping 'wedge' formation. This might just add enough pressure for a squeeze up to trendline resistance, a break of which just might set off enough buy stops to get us back up to 1.3000. Hopefully a sustained break above 1.3000 this afternoon, and even better a weekly close above 1.3100, should add some bullish momentum.