The Euro stopped only 4 pips above the resistance specified in yesterday's report 1.3648, and fell hard, breaking the support 1.3589, and successfully reaching the first suggested target 1.3496. It also came sort of close to the second target 1.3442 (yesterdays low was 1.3459). We note on the attached chart that yesterday's low came very close to the trend line slowly rising from 1.3422, to the extent that it could be considered as a 3rd touch of the line. Thus, this line has gained more importance.

Usually, when the price stops and creates a series of bottoms that are so close to each other (1.3442, 1.3450 & yesterday 1.3459), and provides us a slightly rising trend line as it is the case, a break of this line will result in a big move on the medium term, and this is to be expected here. A break of this line could result in a move approaching 1.30 in a very few weeks. For the short term, the above mentioned line provides support at 1.3465, and if it gets broken, we see the Euro falling to 1.3390 & 1.3299. The resistance is provided by Fibonacci 61.8% for the short term at 1.3578, and if broken the Euro will catch a breath, and jump to 1.3652, and may be 1.3740.

Support:

* 1.3465: the slightly rising trend line from 1.3422.

* 1.3390: Apr 13th high.

* 1.3299: Apr 24th high.

Resistance:

* 1.3578: Fibonacci 61.8% for the short term.

* 1.3652: important resistance level on hourly charts.

* 1.3740: previous well known resistance area.

Forex Trading Analysis written by Munther Marji for forexpros. com