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The Euro dropped from 1.4376 until it reached and tested Fibonacci 61.8% support for the whole move from 1.4045 to 1.4405. The above mentioned Fibonacci support at 1.4183 will be the most important for the short-term, after it survived yesterday's test (yesterday's low 1.4176) , because a break of this specific support will open the door to a trial to find a new bottom below Aug 17th low 1.4045 within this week. Any attempt to go up will have to break through 1.4252 (short-term 38.2% Fibonacci Resistance), and if this attempt is corrective, it should not go higher than 1.4300, as we can surely say that this is the most important resistance for the moment.
- 1.4183: Fibonacci support 61.8%, the most important support for short-term.
- 1.4135: The rising trendline from July's low.
- 1.4081-1.4085: a support area that contains Aug 12th & 19th lows.
- 1.4252: Fibonacci 38.2% for the short-term.
- 1.4300: Fibonacci 61.8% for the short-term, the most important resistance
- 1.4360: the falling trendline from Augusts' high.
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.
- 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 &
- 91.20: the bottom of the falling channel from Aug 7th high.
- 93.36: The trendline falling from Aug 9th, the most important resistance
- 94.19: Aug 17th low.
- 94.89: Intraday high, and previous support.
Forex trading analysis by Forexpros - Written by Munther T. Marji
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