The Euro held above the suggested support 1.4501 and rallied to a new top for this trend at 1.4650, which is still inside the suggested area for a top.

The top of the channel is currently at 1.4682 and this will be a curtail resistance, that could stop the current rise and force a correction of good size.

We favor the formation of a top in these areas as long as the Euro does not break the top of the channel decisively. After that we expect a move down to areas below 1.45.

The only thing that could save the Euro from a sizable drop is a clear break above the top of the current channel. The previous 1.4570 resistance will act as the most important support for short-term, and breaking it means the correction is back on track, and is heading to 1.4459 at least, in the next few days.

Support:

• 1.4570: short-term support.

• 1.4501: Thursday's low.

• 1.4459: Fibonacci 38.2% retracement level for the whole move up from 1.4190.
 

Resistance:

• 1.4682: the top of the current channel on the hourly chart.

• 1.4720: the unforgettable top of December 2008.

• 1.4774: previous well known resistance/support.

Forex Analysis by Munther T. Marji at ForexPros. com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check Forexpros. com