Forex: EUR/USD corrective rebound to 1.4570/1.4685 zone looks likely

By IBTimes Staff Reporter | January 11 2010 3:07 AM

FXstreet.com (Barcelona) - Euro bounced from last week´s range bottom at 1.4260/70 area to hit levels above 1.45 in a correction from December's decline, which according to Karen Jones, technical analyst at Commerzbank, could extend to 1.4570/1.4685 area.

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Potential bearish flag, shaping during last two weeks has been canceled, according to Jones, and the pair could rally to 1.4570/1.4685 zone this week: EUR/USD is at last correcting higher from its 200 day ma at

1.4259. The potential bear flag has been negated and a corrective rebound into the 1.4570/1.4685 zone looks the most likely outcome this week.

On a wider perspective, Jones expects failure at 1.4570/1.4685, to trigger resumption of downtrend towards 1.4070: We look for failure here (1.4570/1.4685) and continue to target Fibonacci support at 1.4070 slightly longer term.

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