Euro Dollar

Reaching the top of the channel at 1.4684, but not breaking it, the Euro is still inside the suggested area for a top. The top of the channel is slowly approaching 1.47, more accurately it is currently at 1.4691. And between here and 1.4720 we have a good resistance that can curb this slow rise. If this happens, we will break 1.4654 and head towards the short-term 61.8% Fibonacci support at 1.4607, which the euro needs to hold above to survive the expected correction. If it does not hold above here, the correction would be already underway, targeting 1.4459 at least, in the next few days. On the other hand, if the euro surprises and breaks the whole 1.4691-1.4720 area, then there would be no reason to believe a correction is going to start from these areas. In this case, we are heading to many resistance levels above 1.48 the first of which is
1.4824.

Support:

• 1.4654: Asian session low.

• 1.4607: short-term 61.8% Fibonacci support.

• 1.4534: Sep 8th high.

Resistance:

• 1.4691-1.4720: the resistance area between the top of the current channel on the hourly chart, and the unforgettable top of December 2008.

• 1.4774: previous well known resistance/support.

• 1.4824: previous daily high.

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