FXstreet.com (Barcelona) - EUR/USD rally from 1.2480 low has capped at 1.2700, and rejection of tthat level has produced a setback towards previous intra-week high at 1.2660.

If the Euro does not manage to hold above 1.2660, next support level could come at 1.2635 (Mar 2 high) and below here 1.2600 would come into play.

According to Stoyan Mihaylov, technical analyst at Deltastock.com 1.2735 area is a strong resistance zone and the Euro will find it rather hard to go over it: As expected, the slide from 1.2662 bottomed at 1.2477 and probably the final leg of the corrective phase above 1.2457 is underway, targeting 1.2753. Keeping in mind, that 1.2735-53 is a strong resistance zone, we will expect reversal around these levels to provoke renewing of the downtrend towards 1.23+.