FXstreet.com (Barcelona) - After the rally in the early American session from the 1.2500 to test the 1.2630 resistance, the pair has been rejected by this level and it fells to the 1.2600 range.

Today's Euro rally extends and the pair has posted a rally of above 170 pips from 1.2460. Above 1.2600 the EUR/USD bias would change to bullish and buying pressure could increase driving the Euro towards 1.2630 first and then to 1.2660/75 level. Currently, the pair is trading close to the 1.2600 level.

On the longer term, the Euro is setting an assault to the downward trending resistance line 1.2990 (Feb 23 high), consolidation above 1.2600 would confirm that the pair has succeeded breaking that trend, on the contrary, a reaction lower would put 1.2515 into focus and below there 1.2455 long term resistance would be exposed.

According to Hugh Gordon, Analyst at ForexYard, the EUR may in fact be pricing in tomorrow's expected rate cut by the European Central Bank (ECB): Typically before an important interest rate decision by the ECB, traders begin to anticipate the policy decision and price-in the impact a day or two ahead of schedule... Technically, It appears a violent breach of the lower border on the 4-hour chart's Bollinger Bands has occurred, signaling that an upward correction may occur in the near future. The recent bullish cross on the daily chart supports this notion. Going long might be a wise choice today.