The Euro broke the support specified in Friday’s report 1.4346, and successfully reached the first target 1.4280. It looks from the channel drawn on the attached chart that 1.4410 is the limit the separates the continuation of the downtrend from its reversal, since it combines the top of the channel with the moving average SMA100.

As long as the price is below this level, the downtrend will continue, looking for fresh lows below Friday’s low 1.4260. Short-term support is at 1.4303 and breaking it would increase confidence in the downtrend, and would target 1.4205 and then the bottom of the channel which is currently at 1.4140. A break of today’s most important resistance 1.4410 would cause a jump to 1.4502, and may be later to 1.4584.

Support:

• 1.4303: Thursday’s low.

• 1.4205: Aug 26th low.

• 1.4140: the bottom of the descending channel on the hourly chart.

Resistance:

• 1.4410: the most important resistance for today, which combines the top of the channel with the moving average SMA100.

• 1.4502: Dec 15th low.

• 1.4584: Dec 11th low.

Forex trading by Munther Marji for Forexpros. See Forexpros for more Forex Quotes.