MARKET TALK: EUR/USD Rally Limited To 1.3255 Region

EUR/USD rally is limited to the 1.3255 area as Tuesday's breach of 1.3110 weakens the structure of the five-week uptrend. Tuesday's low at 1.3080 has prompted a corrective rally consolidating the decline from last week's high at 1.3322, and while 1.3255 caps, the main threat remains for a bear wave extension beneath 1.3080 towards 1.3026 and 1.2909. Only a sustained break above 1.3255 would suggest a return to the 1.3322 high is on the cards. EUR/USD is at 1.3170. -By Francis Bray, Dow Jones Chief Technical Analyst For Europe.(francis.bray@dowjones.com) (This article is general financial information, not personalized investment advice, as it does not consider the unique circumstances affecting an individual reader's decision to buy or sell a specific security or currency. Dow Jones does not warrant the accuracy, completeness or timeliness of the information in this article, and any errors will not be made the basis for any claim against Dow Jones.