FXstreet.com (Barcelona) - The Dollar has experienced a sharp upside correction and from levels around 75.00 to break above 76.00 in a short-term corrective rally, according to Karen Jones, technical analyst at Commerzbank.
The Euro has broken downtrend resistance line at 76.09, on its way to 77.50, says Jones: The market has now eroded the 76.09 downtrend and the close above here implies a corrective rebound towards 77.40/50, the October high and potentially 78.40, the 23.6% retracement of the sell off from March.
On the downside, Jones observes 74.75 and 74.50 support lecvels: Key short term support is the 78.6% retracement (of the 2008 to 2009 move), which lies at 74.75 and the November 2007 low at 74.50. Below here lies 73.74, 19 month support line. This connects the March 2008 low to the July 2008 low.