The Euro broke the support specified in yesterday’s report 1.4260, but it stopped half way between the support & the target, as yesterday’s low was 1.4216. It looks from the channel drawn on the attached chart that 1.4298 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 1.4238 and breaking it would increase confidence in the downtrend, and would target 1.4153 and then the bottom of the channel which is currently at 1.4030. A break of today’s most important resistance 1.4298 would cause a jump to 1.4446, and then to 1.4502, and later to Fibonacci 38.2% for the medium-term 1.4596.

Support:

• 1.4238: Fibonacci 38.2% for the micro-term.

• 1.4153: Jul 2nd high.

• 1.4030: the bottom of the descending channel on the hourly chart, and Aug 18th low.

Resistance:

• 1.4298: the most important resistance for today, which combines the top of the channel with the moving average SMA100.

• 1.4446: Aug 5th high.

• 1.4502: Dec 15th low.