First we would like to draw your kind attention to the ECB rate decision that will come out later today, and to president Trichet's news conference that will follow. The Euro advanced to 1.4761 before retreating back to 1.4682. And with that, 1.4776 became the most important resistance for the short-term, and the key to reach new tops. If broken, the Euro will be able to reach areas above 1.48 within 24 hours after the break, first of which is 1.4824, then new highs above the tops of September 22nd & 23rd, the most attractive of which is 1.4901.

On the other hand the most important support for the short-term is Fibonacci 61.8% at 1.4695, holding above it is crucial for the upward movement. But if it's broken, we expect a test of one of the important support levels in the 1.46 & 1.45 areas such as 1.4645, 1.4613, 1.4575, down to 1.4509.

Support:

• 1.4695: Fibonacci 61.8% for the short-term.

• 1.4645: Previous intraday resistance.

• 1.4587: Previous intraday support.

Resistance:

• 1.4776: previous well known resistance.

• 1.4824: previous daily high.

• 1.4901: previous daily high.

Forex trading analysis by forexpros. com - Written by Munther T. Marji