The Euro is testing at this very moment the short-term support 1.4563, after dropping hard in the last half hour. This support is the last barrier before testing Fibonacci 50% which is at 1.4509. Short
-term resistance is 1.4622, and breaking it would give another attempt to reach 1.47 (after yesterday's attempt).

If 1.4563 is broken, then the falling correction will try to reach Fibonacci 50% support at 1.4509, or Fibonacci 61.8% at 1.4430. In this case, this support in particular will become the most important support for the medium term, since breaking it would mean that this drop is more than just a correction, and that the uptrend which started at 1.4176 is already over.

On the other hand, if we break 1.4622 we will head first to the resistance area that stopped the price twice yesterday and during the Asian session 1.4668-1.4672. We do not expect a lot of trouble here, on the contrary we would expect to pass it, and reach 1.47 and above, especially the important resistance 1.4720.

Support:

• 1.4563: short-term support.

• 1.4509: Fibonacci 50% for the rise from 1.4176 to last week's top 1.4842.

• 1.4430: Fibonacci 61.8% for the rise from 1.4176 to last week's top 1.4842. The most important support for the medium-term.

Resistance:

• 1.4622: short-term resistance.

• 1.4720: the resistance area that stopped the Euro from rising 3 times late last week.

• 1.4776: previous resistance.

Forex trading analysis by forexpros.com - Written by Munther T. Marji