Forex: EUR/USD retreats from highs, around 1.3480

FXstreet.com (Barcelona) - After jumping to levels just shy of 1.3500, the single currency is now back to the area around 1.3480, as market participants continue to digest the disappointing US consumer confidence result.

I.Spivak, Currency Strategist at DailyFX, comments, "prices are pulling back from resistance at the top of a rising channel set from early December (1.3472), a barrier reinforced by the 76.4% Fibonacci expansion at 1.3492. Negative RSI divergence reinforces the case for a downside scenario. Near term support is at 1.3397, the 61.8% level".

At the moment, the cross is up 0.23% at 1.3486 facing the next resistance at 1.3491 (50% of 2011-12 decline) ahead of 1.3528 (Upper Bollinger) and then 1.3550 (high Dec.2 2011).
On the flip side, a breakdown of 1.3415 (hourly low Jan.19) would expose 1.3370 (MA10d) and finally 1.3349 (low Jan.25).