FXstreet.com (Barcelona) - The Euro has rallied about 175 pips post -Fed statement and from 9-moth low at 125.25, the pair has rallied to 127.00/10 resistance area, to ease afterwards, pulling back to levels above 126.50 at the moment of writing.

The Euro is a bit overextended to the topside, according to Carol Harmer, technical analyst at Charmer Charts who observes the need of a short-term pullback: Now we have good resistance from short term fib level at 126.80/83 and initially longs should be covered. We are becoming overextended on the topside with stochastic at high levels on the hourly charts. We need a short term pullback from these higher levels to ease this short term scenario.

On a longer term perspective, Harmer observes the Euro on the upside, with declines to 126.05/00 seen as good buying opportunities: longer term charts are showing that this is going to trade higher, so look to buy into any pullbacks over the next 1/2 sessions looking for an increase in prices. Below 126.43 sees 126.06/126.00. This would seem a good re-entry point for buyers.

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