FXstreet.com (Barcelona) - EUR/USD is picking up strength after bouncing back from 1.2525 on Wednesday and has been rallying about 120 pips so far, as concerns over Eastern European Banks affecting Eurozone's economy seem to be fading.

The Euro has broken resistance at 1.2630 in early European session reaching 1.2660 on its way to 1.2675. Above here, next resistance lines stand at 1.2700 and 1.2725. If upside move above 1.2630 does not succeed, the Euro will focus on support line at 1.2560, and below here 1.2525.

On a longer term, the EUR/USD is trading within a downward trending channel down from 1.3093 (Feb 9 high). Only above 1.2725 the Euro would leave its bearish trend.