The Euro stopped at the resistance established in Friday's report 1.4772 with amazing accuracy, a stop which was a signal that we are heading to areas below 1.47. And now, there is a resistance that combines the rising trendline drawn from 1.4566, and the falling trendline drawn from 1.4816, and is currently at 1.4725, if price stay below it, we are heading south.

The probability of more downside grows with a break of the nearby support 1.4693. Such a break would signal more of the drop, to test one or some of the important support levels in the 1.46 & 1.45 areas such as 1.4645, 1.4613, 1.4575, down to 1.4509. The most important resistance is short-term is of course 1.4725. If broken, the Euro will be able to reach areas above 1.48, first of which is 1.4824, then new highs above the tops of September 22nd & 23rd, the most attractive of which is 1.4901.

Support:

• 1.4693: short-term support.

• 1.4645: Previous intraday resistance.

• 1.4574: Previous intraday support.

Resistance:

• 1.4725: an area combining the rising trendline from 1.4566, and the falling trendline from 1.4816.

• 1.4761: previous daily high.

• 1.4826: previous daily high.

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