Finally, the Euro reached new tops for this year, and came very close to our favorite target 1.4901 (the high until this very moment is 1.4898). By taking a look at the drawn channel we find that the important question now is will 1.50 be the next stop? To answer this question, we must estimate the strength of the resistance levels in this area, especially 1.4901 & 1.4953.

We expect that in case of a break 1.4901, the Euro will be able to reach 1.50. But, if 1.4901 succeeds in capping the price, what will be expected is a correction for the move up from 1.4672 (at least), which is expected to drop the price back to 1.4793 first, and if broken, we can expect more drop. The important support now is the nearby 1.4872, a break would signal that a correction of some kind has started. To summarize: 1.4901 is resistance of the day, a break would lead to 1.50, while the support of the day is 1.4872, and a break here would lead to 1.4793 as the first important stop, and if broken we will head to the important support on the intraday charts 1.4755.

Support:

• 1.4874: short-term support.

• 1.4793: Fibonacci 61.8% for the short-term.

• 1.4755: the rising trendline from 1.4480 on the intraday charts.

Resistance:

• 1.4901: previous daily high.

• 1.4953: previous daily high.

• 1.5000: the top of the rising channel on the hourly chart.

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