Again, we have seen the long awaited test of 92.70 (the rising trendline from the year's low 87.10 on the daily chart). But the drop stopped only pips below it (yesterday's low 92.50), so close to Monday's low (92.53). Having no real ability to perform a real break of that line makes it worth being careful, and avoid jumping on board for either the Dollar or the Yen. We do not recommend much enthusiasm for the Dollar before we break the trendline falling from Aug 9th high, which runs currently at 93.36. On the other hand, the bounce from yesterday's low is so fragile and we could see it get broken in the 3rd attempt today.

Support:

• 92.50-92.53: The support area which contains the previous 2 days lows, a break here would open the way to get away from the broken line.

• 91.73-91.76: Strong, important support area that combines July 8th, 10th & 13th lows.

• 91.20: the bottom of the falling channel from Aug 7th high.

Resistance:

• 93.36: The trendline falling from Aug 9th, the most important resistance for short-term.

• 94.19: Aug 17th low.

• 94.89: Intraday high, and previous support.

Forex Analysis by Cory Mitchell at ForexPros. com. For more details
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