ForexPros Daily Analysis April 8, 2010
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The Euro broke the support 1.3355, but managed somehow to hold above 1.33. The fact that the Euro has traded above 1.33 after this break is a result of approaching a new channel’s bottom. This channel which we present to you today on the attached chart, helped the Euro survive above 1.33, but will it succeeds in doing in doing so today? We see the most important support for short term is the nearby 1.3319, and breaking it would give the Dollar a push, driving this pair to new lows for this wave. We see that breaking this support will result in breaking 1.33 and then creating a strong move targeting 1.3212 and then 1.3113, as we approach the important 1.30 level. As for the resistance it is at 1.3356, and breaking it would indicate we are targeting the top of the channel at 1.3420. And if this resistance is broken, the technical picture will improve, dramatically, and we will see the Euro bringing out a few surprises, which will lead to the test of the very important falling trend line for the long term, which is at 1.3517.
• 1.3319: important intraday support.
• 1.3212: May 4th low.
• 1.3113: Mar 30th 2009 low.
• 1.3356: the top of the falling channel on hourly chart.
• 1.3420: the top of the falling channel from Friday's low on hourly chart.
• 1.3517: the falling trend line for the long term on the daily chart.
The Dollar-Yen broke the support in yesterday’s report 93.75, and stopped with stunning accuracy at the first suggested target 93.12 (the Asian session low, and the daily low until the moment of preparing this report is 93.12). This proves the importance of this level which we described yesterday as very important. Thus, we will keep our attention focused on this level, since a break here would indicate that the fall from 94.77 is more than just a correction. If 93.12 is broken, we expect this pair to get hammered to 92.10 first, and then the important 91.55, which represents the last line of defense for the rise from 88.12. With this drop, we now have a clear falling channel from 94.77, with its top at 93.82. If this resistance is broken, the USD will be able to capitalize on the accurate stop at 93.12 t achieve gain, targeting the weekly high 94.77 first, and then 95.84.
• 93.12: Fibonacci 61.8% for the rise from 92.10, a very important support for the short term.
• 92.10: Mar 30th low.
• 91.55: the rising trend line from 88.12 on the hourly chart.
• 93.82: the top of the falling channel from 94.77.
• 94.77: this week’s high so far.
• 95.84: Jul 31st high.
Forex Trading Analysis written by Munther Marji for ForexPros.
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