After the issuance of the last report, the Euro did not break any of the levels specified in the report. 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.

And now, we have yet another reason to pay attention to this line, which is the forth touch. The downtrend from 1.4577 will be dominant as long as we are below this line, which is currently at 1.3933, that’s why this will be resistance of the day. While the support is at short term Fibonacci 1.3885, and breaking either of these levels will set the direction for today. Breaking resistance 1.3933 will initiate a correction for the whole drop from 1.4577, targeting 1.4062 first, then ideal targets start at 1.4128. On the other hand, breaking support at 1.3885 means that we will test the important 1.3824, and if broken, targets start at 1.3747.

Support:

• 1.3885: important intraday low.

• 1.3824: Dec 19th 2008 important low.

• 1.3747: Jun 16th low.

Resistance:

• 1.3933: the falling trend line from 1.4554 on the hourly chart.

• 1.4062: Fibonacci 61.8% for the last drop from 1.4192.

• 1.4128: Fibonacci 38.2% for the whole drop from 1.4577.

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