FXstreet.com (Barcelona) - Euro recovery from 1.4480 low on Friday, has been capped at 1.4655 on early European trading and the Euro pulled down to 1.4610, right above the 20 hour SMA. At the moment, the pair trades around 1.4625.

According to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, expects the Euro to remain trading between 1.4685 and 1.4480: the pair has stopped its rally right on the new downtrend line around 1.4650 and the bears will being doing their utmost to keep it below 1.4684. The pair is looking pretty overcooked on the 2 hourly stochastics up at these levels too so with little news on the horizon I would expect shorting between 1.4620 and 1.4660, some mild short covering around 1.4550 and real long interest at 1.4480.

Resistance levels lie at 1.4645 (Oct 2 high), and above here, 1.4675/80 (Sept 30/Oct 1 high) and 1.4725/30 (28 and 25 Sept highs). On the downside, initial support levels come at 1.4615/20, and below there, 1.4580 (intra-day low) and 1.4560.