Forex: EUR/USD on recovery, reaches 1.4165 resistance area

By IBTimes Staff Reporter | January 22 2010 5:36 AM

FXstreet.com (Barcelona) - Euro decline from 1.4400 area on Tuesday found a strong enough support area at 1.4025/30 on Thursday, and the pair has picked up reaching resistance area at 1.4265, which is being tested at the moment.

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Above 1.4165, next resistance levels could be at 1.4220/30 (intra-day resistance on Jan 20) and 1.4250/60 (Jan 19 low). Support level lie at 1.4100/10, and below here, 1.4065 1.4065 (session low), and 1.4025 (Jan 21 low).

Current rebound is a short-term corrective reaction, according to Karen Jones, technical analyst at Commerzbank, which is likely to be capped below 1.4325: On the 60 minute chart, there is a lot of divergence of the RSI and this adds weight to the argument for a short term rebound. Rallies are likely

to find interim resistance now at 1.4165, 1.4218 and be contained by 1.4325.

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