FXstreet.com (Barcelona) - Euro recovery from Wednesday's low at 1.4080 has reached 1.4270 area, which is coincident with the 50% retracement of the Friday - Wednesday decline, and, according to Karen Jones, technical analyst at Commerzbank, a strong resistance area that could cap Euro recovery.

Jones observes the posibility of a downward reversal from 1.4270/4310 area: We suspect that the market will find good interim resistance at 1.4265/1.4310 and while capped here, the risk will remain for an extension of the downmove to the 6 month uptrend at 1.3876.

On the upside, above 1.4310, intra-day risk will be flipped to the topside, says Jones: Above 1.4310 will shift the intraday risk to the topside, targeting the recent high at 1.4445 and the top of the channel at 1.4545.

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