EUR/USD 1,4217

Euro recovery from 4-month low at 1.3835 on Tuesday extended sharply yesterday, to regain all the ground lost last week, reaching 1.4280 on early Asian session, to consolidate below here in Europe, with downside attempts contained, so far at 1.4165.

Resistance levels are 1.4280 (day high/100-day MA), and above here, 1.4370/75 (Jul 7/8 highs) and 1.4465 (Jul 6 high). On the downside, the pair has found support at 1.4165 (20-hour MA), below ere, next potential support levels lie at 1.4130 (intra-day level) and 1.4035 (intra-day level).

Technical indicators show that the pair has set a bottom at 1.3835, according to Slobodan Drvenica, analyst at Windsor Brokers: "Strong rebound from 1.3836, 12 July low, exceeded our barrier at 1.4200, to extend gain to 1.4281 so far, just under Fib 61.8% retracement of 1.4576/1.3836 downleg. This confirms temporary bottom at 1.3836 and turns near-term focus higher."

source: fxstreet.com