FXstreet.com (Barcelona) - Euro has found support against Dollar at 1.4220, intra-day low, coming from its 60 pips decline from 1.4280 during the American session, and the pair has jumped to trade above 1.4250 level and recover previous losses.
Currently the pair is trading around 1.4250/60 posting 0.15% daily gains from opening price action.
Sam Shenker, Analyst at TradeTheNews.com, expects more down movements: The euro continued to retreat from recent highs after the pair failed to reach 1.4400 figure and once again fell below the 20-day SMA. A further move to the downside will most likely see the pair target support at 1.4132, the 50-day SMA followed by a neckline of a small Head and Shoulders pattern that can be observed on the daily chart and is a result of the price action during July and August. A break below the neckline will most likely see the euro accelerating past support at 1.3981, a 23.6 Fib of the 1.2457-1.4453 EUR rally and target bids along 1.3800 figure, a level defended by the multiple pivots set during May-July monthly lows. This in turn should see dollar longs break the upward sloping trendline that has dominated the price action since March.