The Euro fluctuated, breaking 1.4308 first, then breaking 1.4380 and flying above 1.44. And as we can see, the price is currently trading inside a falling channel on the hourly chart, with the top of the channel at 1.4449.

Thus, we will consider this level as resistance of the day. If broken, we will see 1.45 since the targets for such a break are 1.4502 first, and then the first Fibonacci retracement level for medium- term (38.2%) at 1.4596. To keep a positive outlook for the short-term, it is preferred that we don’t break the support 1.4391, holding above it would improve the chances for more upside movement. But if it is broken, we expect the price to drop to 1.4330 first, and then test the support area that was obvious during the second half of this month 1.4264.

Support:

• 1.4391: Fibonacci 61.8% for the short-term.

• 1.4330: important intraday support from Tuesday.

• 1.4264: Dec 21st low.

Resistance:

• 1.4449: the top of the falling channel on the hourly chart.

• 1.4502: Oct 2nd low.

• 1.4596: Fibonacci 38.2% for the medium-term.

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