FXstreet.com (Barcelona) - Dollar rally from 4-week low at 93.65 low on Wednesday has been capped at 95.50 resistance on early European session, and the pair eased to levels around 94.20.

According to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, the Dollar lies below resistance at 94.44: 93.86 held well yesterday as the major support level but the bounce higher does not hold much conviction. 94.44 is the first resistance and the mid downtrend channel and the 60 minute stochastics have turned short term term bearish in early European trading.

Resistance levels, according to Rosentreich, lie at 94.78, and above here, 96.80 and 97.50. On the downside, support levels lie at 94.00, and below there, 93.86 and 93.10.