FXstreet.com (Córdoba) - The euro bounced strongly and managed to climb back to Friday's closing levels near 1.2240 after an unexpected drop in US retail sales fueled speculation the Fed could provide further stimulus ahead of Bernanke testimony later this week.
The recovery of the EUR/USD however, found resistance at a New York session high of 1.2248 but the subsequent dip was contained by the 1.2210 zone. At time of writing, EUR/USD is trading around 1.2240, still 0.2% below its opening price.
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that 1.2285 is a key resistance level, as it represents the 23.6% retracement of the latest daily fall. "Only above this latter the pair will be able to extend its upside on short covering, with 1.2330/40 area then at sight", she adds. On the downside, Bednarik locates supports at 1.2210, 1.2175 and 1.2140.
The recovery of the EUR/USD however, found resistance at a New York session high of 1.2248 but the subsequent dip was contained by the 1.2210 zone. At time of writing, EUR/USD is trading around 1.2240, still 0.2% below its opening price.
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that 1.2285 is a key resistance level, as it represents the 23.6% retracement of the latest daily fall. "Only above this latter the pair will be able to extend its upside on short covering, with 1.2330/40 area then at sight", she adds. On the downside, Bednarik locates supports at 1.2210, 1.2175 and 1.2140.
