The Euro broke the resistance specified in Thursday’s report 1.4371, but settled for a test of the resistance 1.4410 (Thursday’s high was 1.4416). The technical outlook is still gaining positivity after breaking the falling channel that we talked about all last week, but failure at 1.4410 might be the first signal indicating a new wave of weakness.

And since it is an important resistance, we will 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 Thursday’s resistance 1.4371, and if this important level is broken, this pair would target the important 1.4292 (important for short term and may be medium term as well), and then
1.4233. A break of today’s most important resistance 1.4410 would cause a jump to 1.4502, and later to Fibonacci 38.2% for the medium-term 1.4596.

Support:

• 1.4371: Thursday’s resistance that became today’s short term support.

• 1.4292: Fibonacci 61.8% short term and it is close to the rising trend line from last week’s low on intraday charts.

• 1.4233: important intraday support from last week.

Resistance:

• 1.4410: previous well known resistance, price stopped near it on Thursday.

• 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 www. forexpros. com. See Forexpros for information.