Forex: EUR/USD capped at 1.3700, dips to fresh lows

FXstreet.com (Barcelona) - Euro reversal from 1.3935 high last week has extended to 13645 in Asia, with the pair weighed by renewed concerns about Greece, where the pair found support to bounce up at European opening, although, capped at 1.3700, the pair has turned lower again, dipping to fresh lows at 1.3630.

On the downside, the pair might find support at 1.3590 (Sept 14 low) and 1.3555 (Sept 13 low) before facing 1.34954 (Sept 12 low). On the upside, immediate resistance lies at 1.3700/05 (day highs), and above here, 1.3730/50 (broken trendline support) and 1.3795 (Gap from Sept 16 closing price).

On the long-term, the downtrend from 1.3940 remains active, heading to 1.3555 and 1.3240 says Stoyan Mihaylov, analyst at Deltastock: "The downtrend from 1.3940 is still intact, targeting 1.3555, en route to1.3240. Initial resistance is projected at 1.3750 and crucial on the upside is 1.3800."