In agreement with the negative technical outlook we talked about in the past two days, the Euro stopped at the first resistance in the report 1.4844 with great accuracy (highest price after the issuance of the report is 1.4840), then dropped breaking the support 1.4801, and reached the first target of that break 1.4702. And after reaching 1.4702, we should not neglect the rising probability of an upward correction for the drop from 1.5061, which reached almost 400 pips so far.

Short-term support is Fibonacci 61.8% for the whole rise from .4480, which is at 1.4702, and breaking it would mean that the drop coming from 1.5061 will be larger than our expectation, and the next targets will be 1.4649 and 1.4610. Short-term resistance is 1.4737, and breaking it would target the Fibonacci 38.2% at 1.4827, and may be Fibonacci 50% at 1.4872. If the negative outlook is to persist, the Euro should not break the most important resistance for the medium-term
1.4916.

Support:

• 1.4702: Fibonacci 61.8% for the whole move from 1.4480.

• 1.4649: Oct 7th low.

• 1.4610: previous support.

Resistance:

• 1.4737: short-term resistance.

• 1.4827: Fibonacci 38.2% for the drop 1.5061.

• 1.4872: Fibonacci 61.8% for the drop 1.5061.

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