The support 1.4264 survived yesterday, causing the Euro to rise. It broke the resistance specified in yesterday’s report 1.4308, and reached both targets 1.4369 & the 1.4424-1.4457 successfully. But with this rise, we got closer to an important resistance, provided by the rising trend line from 1.4410, which is illustrated on the attached chart, and is currently at 1.4485.

This line could provide a chance to reverse the short term direction after yesterday’s rise. So, 1.4485 will be resistance of the day, and breaking it would indicate a continuation in the uptrend with the next set of targets at 1.4569 & 1.4678, the first & second main Fibonacci retracement levels for the medium term (The 38.2% & 50%). But, if 1.4485 could reverse the direction, the price will drop to the support at 1.4454, and if broken a correction for the whole up-move from 1.4256 will be initiated, which will ideally target 1.4369, and may be later 1.4303.

Support:

• 1.4454: support level on the hourly chart.

• 1.4369: Fibonacci 50% for the rise from 1.4256.

• 1.4303: support level on the hourly chart.

Resistance:

• 1.4485: the rising trend line from 1.4410 on the hourly chart.

• 1.4569: Fibonacci 38.2% for the whole drop from 1.5139 to 1.4216.

• 1.4678: Fibonacci 50% for the whole drop from 1.5139 to 1.4216.

Forex trading by Munther Marji for Forexpros.