FXstreet.com (Barcelona) - Euro recovery from Monday's low at 1.4845 has been capped at 1.4925 on European morning session, and the pair has dropped to move between 1.4860 and 1.4890.

The Euro could be shaping downtrend channels at the moment, says Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets: 1.4967 will now serve as a fairly decent resistance zone to the upside with potential new downtrend channels forming with the upper of those at 1.5000 / 20. These downtrend channels have already been confirmed once this morning as we sold off very aggressively from 1.4925 so another leg down to the lower channel at 1.4684 would not be out of the ordinary.

Support levels, according to Rosentreich, lie at 1.4850, 1.4795, 1.4684. On the upside, resistance levels lie at 1.4967, 1.5020 and 1.5160.