FXstreet.com (Barcelona) - The Euro's decline against the Dollar from intra-day high at 1.4674 has found support at 1.4575 and EUR/USD has begun to rise back above 1.4650 level. Currently the pair is trading around 0.50% above today's opening price action at 1.4585 to the actual 1.4650/60.
According to the FastBrokers Research Team, today's rally in the EUR/USD has hit a roadblock after America's ADP Non-Farm Employment: Meanwhile, the EUR/USD still faces several downtrend lines with limited EU economic data on tap this week. Therefore, there seems to be little ammo to turn the tide and continued near-term weakness could be in order. The EUR/USD's dip below our 1st tier uptrend line was a risky move since it runs through 9/8 levels. Although the currency pair climbed back above our 1st tier, a more definitive retracement could send the currency pair tumbling below the psychological 1.45 level.
Valeria Bednarik, FXstreet.com collaborator, comments: Daily chart in Euro, is showing quite a zone at the 1.4600 level, where we have both, the 38.2% retracement of the last up leg, and the 20 SMA that holds a bullish slope. However, indicators had turned to the downside, with momentum about to cut the 100 line, and RSI close to cut the 50 level, in not the best angle to suggest some downside continuation. Still, that 1.4600 zone that's capping the downside is the first stone pair has in a probable way down; daily close under that level, will put the pair under pressure, with 1.4515 not so strong support ahead of more important 1.4440 area; that zone will be key as under such level, chances of stronger falls growth. To the upside, 1.4680 is the first level to watch, followed by 1.4720 area, as regained of that zone will suggest current movements are just downside corrections, and trigger more upside rally for the days to come.