Although it surpassed 1.4410, the Euro was unable to maintain its gains, and gave them up, returning to 1.43, where there is a critical support at 1.4308. The price reached 1.4304 before bouncing more than 50 pips until this moment.

The importance of 1.4308 is that it is Fibonacci 61.8% for the whole rise from 1.4216 to yesterday’s top at 1.4456, and breaking it would mean that the price will come back to test the falling channel that was broken last week (which is currently below 1.41) at a later time. But the targets for the upcoming hours for this break will be 1.4233 & 1.4176. Short-term resistance is at 1.4380, and breaking it would mean that the technical outlook for the short-term would be positive and the targets for this break would be 1.4480 & 1.4536.

Support:

• 1.4308: Fibonacci 61.8% for the rise from 1.4216 to 1.4456.

• 1.4233: important intraday support from last week.

• 1.4176: Sep 1st low.

Resistance:

• 1.4380: Fibonacci 50% for the short-term & a well known previous resistance.

• 1.4480: Oct 2nd low.

• 1.4536: a well known previous support/resistance area.

Forex trading by Munther Marji for www. forexpros. com.