FXstreet.com (Barcelona) - Dollar recovery has been capped at 1.3535, and the Euro has bounced up reaching levels above 1.3615, previous intra-day low.

If the Euro manages to remain above here, it could attempt a new attack to 1.3725/35 high. Above here 1.3795 (8 Jan high) would come into focus, and then 1.3854 (61.5 retracement of the December March decline). On the downside, reversal from current levels could trigger return to 1.3410, and below there, 1.3325 (Jan 28 high). Once below there, 1.3160 and 1.3078.

According to Valeria Bednarik, collaborator at FXsttreet.com, the Euro is prone for further depreciation: Hourly charts are confirmer further downside correction for the pair, after breaking a short term flag to the downside. Low volume as traders await American opening, price is under the 20 SMA that is slowly turning down. 60 and 200 EMA the most, should hold the downside.