The Euro surpassed the resistance 1.4734 but stopped very close to Wednesday’s high, before reversing, and breaking the support 1.4692, and then reaching the first suggested target 1.4610. The rising trendline from Tuesday’s low (and the lower limit for the supposed triangle pattern) is currently very close to Fibonacci 61.8% for the short-term at 1.4701.

This makes this double resistance the most important, and only breaking it would improve the technical outlook for the Euro. If broken, we will enter a correction for the whole drop from 1.5139, which will target 1.4796 at least, and probably 1.4826. As for the support it is at 1.4656 and breaking it would mean that the rising correction from Friday’s low is probably over, and that would target 1.4597 and then
1.4510.

Support:

• 1.4656: rising trendline on the intraday charts.

• 1.4597: important intraday low from Friday.

• 1.4510: previous support area that includes several daily lows.

Resistance:

• 1.4701: Fibonacci 61.8% for the short-term, and the lower trendline in the supposed triangle formation that was broken on Friday.

• 1.4796: Fibonacci 38.2% for the drop from 1.5139.

• 1.4826: Fibonacci 50% for the drop from 1.5139.

Forex trading analysis by Munther Marji for www. forexpros. com. See our new commodities section on Forexpros