The Euro broke the resistance specified in yesterday’s report 1.4298, but it stopped half way between the support & the target, as the high in the past 24 hours was 1.4365, a few pips below short term resistance 1.4371. This morning the price came back close to this resistance that we consider as resistance of the day, and breaking it would confirm the upward direction that started by breaking the descending channel.

Short-term support is at 1.4238 and breaking it is not expected after the radical change in the technical outlook that happened after breaking 1.4298. But if it happens it would target 1.4153 and then 1.4030. A break of today’s most important resistance 1.4371 would cause a jump 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:

• 1.4371: Monday’s high, and the resistance that the price tried to break twice in the past 24 hours.

• 1.4502: Dec 15th low.

• 1.4596: Fibonacci 38.2% for the medium term (for the whole move from 1.5139 to 1.4260).

Forex trading by Munther Marji for Forexpros. See Forexpros for Forex software and trading tools.