The Euro broke the resistance 1.4327 and reached our first suggested target 1.4406 successfully. But after reaching 1.4445 it came back to falling, as it is trading now around 1.4360. And with coming back to these areas, we once again assure the importance of 1.4264, and we will consider it the borderline between a continuation of the drop from 1.4482, or a bounce to the upside.

But before it we should place our attention on 1.4344, and if broken a test of the important 1.4264 will be underway. If this important support is taken, we expect the Euro to drop towards 1.4176. But if it holds, a test of short term resistance 1.4394 will follow, and breaking it would lead to a rising move targeting 1.4485, which reversed the upside activity, and caused Tuesday’s drop, and later 1.4584.

Support:

• 1.4344: Fibonacci 61.8% for the short term.

• 1.4264: Dec 21st low.

• 1.4176: Sep 1st low.

Resistance:

• 1.4394: the falling trend line from yesterday’s high on intraday charts.

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

• 1.4584: Dec 11th low.

Forex trading by Munther Marji for Forexpros.