Yesterday's drop stopped with great accuracy at what we called "the most important support" 89.31 (yesterday's low was 89.34). And today, 90.20 will still be the most important resistance. If the dollar fails to break it, this pair will go back to falling, after that sharp bounce from 88.22. But, a break of 90.20 would give a chance to approach 91 since the first important resistance in these areas 90.90.

Just above that there is the most important resistance, the limit of the downtrend 91.01, which represents the falling trendline from August 9th top, and just below it there is the moving average SMA100. The most important support for today is 89.31 which is Fibonacci 50% for the rise from post-open low. If we break 89.31 that would mean we are on our way to break the 8- month low at 88.22, in this case 87.97 and 87.10 look like the most possible targets of the next leg down.

Support:

• 89.31: Fibonacci 50% for the short-term.

• 88.56: previous intraday support.

• 87.97: Jan 23rd low.

Resistance:

• 90.20: the previous support that stopped the current rise, and a support area that includes the daily lows of 11th & 16th of the month.

• 90.90-91.01: previous intraday support/resistance, plus the falling trendline from Aug 9th top.

• 91.82: previous support/resistance.

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