FXstreet.com (Barcelona) - Euro rally from Asian session low at 1.4850 has extended during European session to levels right above 1.5000, but, after hitting a fresh 2-week high at 1.5010, the Euro has returned below 1.5000 and trades at 1.4985 at the moment of writing.

For the near term, Axel Rudolph, technical analyst at Commerzbank expects the Euro to cap between here and 1.5065: Retest its 1.50 psychological resistance area but should be capped between it and the 1.5064 August high.

On the downside, only a decline through 1.4666 would shift bias to the downside, says Rudolph: Failure here will target the 1.4450/33 area (August high and double Fibonacci retracements) and possibly 1.4069 (38.2% Fibonacci retracement of the move up from March).

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