Friday’s report shined as the price stopped only 6 pips before the resistance specified in the report, and then started falling, breaking the support 1.3936 and successfully reaching the first suggested target 1.3888. But we have not tested the important 1.3824. Looking at the hourly chart, we can see that the Euro, and before breaking 1.4014 last week, has stopped at the falling trend line from 1.4554 for a third time, which makes this line one that deserves attention.

The downtrend from 1.4577 will be dominant as long as we are below this line, which is currently at 1.3959, that’s why this will be resistance of the day. While the support is at short term Fibonacci 1.3867, and breaking either of these levels will set the direction for today. Breaking resistance 1.3959 will initiate a correction for the whole drop from
1.4577, targeting 1.4068 first, then ideal targets start at 1.4139. On the other hand, breaking support at 1.3867 means that we will test the important 1.3824, and if broken, targets starts at 1.3747.

Support:

• 1.3867: short term 61.8% Fibonacci support.

• 1.3824: Dec 19th 2008 important low.

• 1.3747: Jun 16th low.

Resistance:

• 1.3959: the falling trend line from 1.4554 on the hourly chart.

• 1.4068: Fibonacci 61.8% for the last drop from 1.4192.

• 1.4139: Fibonacci 38.2% for the whole drop from 1.4577.

Forex trading analysis by Munther Marji for http: //www. forexpros. com