FXstreet.com (Barcelona) - The Euro fell sharply in December,dropping from 1.5140 area to 1.4215 , the lowest levels since early December and consolidate between here and 1.4450 on late December; Karen Jones, technical analyst at Commerzbank expects the pair find support around 1.4232 to pick up on profit taking.

The Euro might find support at the 200 day MA and bounce up on profit taking, according to Jones, targeting 1.4570/1.4625: The sell off has recently encountered the 200 day ma, currently at 1.4232. While we would allow for some near term profit taking here, we look for rallies to remain capped by 1.4570/1.4625.

On the shorter term, however, Jones observes the Euro on the downside, targeting 1.4070: Target 1.4070, 38.2% retracement of the move from 1.2330/Novemeber 2008 to 1.5144.

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