With astonishing accuracy, the Euro stopped at the suggested reversal point 1.4485 (yesterday’s high was 1.4482), and exactly as we expected, started a big drop that reached 200 pips, passing by and breaking the support 1.4454, and reaching both suggested targets 1.4369 & 1.4303 successfully.

And with coming back to areas below 1.43, we once again assure the importance of 1.4264, and we will consider it support of the day, and the borderline between a continuation of the drop from
1.4482, or a bounce to the upside. If this important support is taken, we expect the Euro to drop on the first trading day of the New Year towards 1.4176 & 1.4103. But if it holds, a test of short term resistance 1.4327 will follow, and breaking it would lead to a correction of yesterday’s big fall, ideally targeting 1.4406, and if broken we will jump to 1.4485, which reversed the upside activity, and caused yesterday’s drop.

Support:

• 1.4264: Dec 21st low.

• 1.4176: Sep 1st low.

• 1.4103: Aug 10th low.

Resistance:

• 1.4327: Fibonacci 61.8% for the micro term.

• 1.4569: Fibonacci 61.8% for the short term.

• 1.4485: the resistance that caused yesterday’s reversal.

Forex trading by Munther Marji for Forexpros.