FXstreet.com (Barcelona) - The Euro has rallied about 100 pips since bottoming at 1.4685 low on Asian session, reaching to an intra-day high at 1.4785 before easing to current levels around 1.4770 at the moment of writing.

On the short term, Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, sees the Euro on a battle between 1.4684 and 1.4876: The short term battle between 1.4684 and 1.4876 has been making things a little messy on the intraday picture, especially with the Fed meeting last night. However, a look at the 4 hour chart and one can see clearly that the RSI divergence play has continued to trade like a dream as it trends lower in perfect order.

For the next sessions, Rosentreich advices to keep an eye on the RSI: The RSI reading here will remain key. Watch for a break below 40 on the 4 hour chart to confirm impending weakness and an increased chance of the pair to break lower. To the upside, be vigilant for a break of the RSI downtrend which could trigger stops for the big divergence players. A move higher in the price back to the major resistance at 1.4850 / 75 with an RSI continuing downwards will simply provide the shorts with yet another opportunity to add to their position.