The Euro broke the short-term resistance 1.4737, and reached the first target suggested for this break at 1.4827 successfully. The most important question for now is this: Is the current rise a corrective or impulsive move? We believe that the limit separating those two possibilities is 1.4916, which is Fibonacci 61.8% for the drop from 1.5061. And as long as the Euro stays below this resistance it is considered a corrective rise, while breaking it would announce more upside movement to come, probably to reach new highs above the last top 1.5061.

The first resistance in front of us is 1.4872, and if it is broken we will head towards the important test of 1.4916, and if this one is broken we will target 1.4980 first, on the way to higher targets. Short-term support is provided by the rising trendline from Wednesday's low, currently at 1.4786, and if broken we will test 1.4702 again, and if this one is broken we will head towards 1.4649.

Support:

• 1.4786: the rising trendline from Wednesday's low on the intraday & hourly charts.

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

• 1.4649: Oct 7th low.

Resistance:

• 1.4872: Fibonacci 50% for the drop 1.5061.

• 1.4916: Fibonacci 61.8% for the drop 1.5061.

• 1.4980: Oct 26th low.

Forex trading analysis by www. forexpros. com – Written by Munther Marji