Euro Dollar

The Euro broke both the support & resistance of yeserday’s report, before choosing the downward road reaching both suggested targets 1.4445 & 1.4405. With that, the long-term Fibonacci 50% support (1.4445) was broken, and we expect to see Fibonacci 61.8% at 1.4280, and we might see it before the weekend. Short-term resistance is at 1.4452, and breaking it is the key to reach and test the most important resistance for short-term 1.4504.

The importance of this resistance comes from being Fibonacci 61.8% for the short-term, and staying below it, would indicate that the rising move from yesterday’s low is just a short-term correction, while breaking it would means it is bigger than that, and would target 1.4574 as a first stop on the road to higher targets. Short-term support is at 1.4405 and breaking it would indicate a continuation of the drop to 1.4354 first, and then the important 1.4280.

Support:

• 1.4405: the rising trend line from yesterday’s low on intraday charts.

• 1.4354: Aug 27th low.

• 1.4445: Fibonacci 61.8% for the long-term (the rise from 1.3737 to 1.5143).

Resistance:

• 1.4452: Fibonacci 38.2% for the short-term.

• 1.4504: Fibonacci 61.8% for the short-term, and the most important resistance.

• 1.4574: intraday resistance from yesterday.