The Euro broke the support specified in yesterday’s report 1.4303, but it stopped half way between the support & the target, and settled for closing on Friday’s low 1.4260, as yesterday’s low was 1.4264. It looks from the channel drawn on the attached chart that 1.4357 is the limit the separates the continuation of the downtrend from its reversal, since it combines the top of the channel with the moving average SMA100. As long as the price is below this level, the downtrend will continue, looking for fresh lows below Friday’s low 1.4260.

Short-term support is at 1.4260 and breaking it would increase confidence in the downtrend, and would target 1.4176 and then the bottom of the channel which is currently at 1.4085. A break of today’s most important resistance 1.4357 would cause a jump to 1.4502, and may be later to 1.4596.

Support:

• 1.4260: Friday’s low.

• 1.4176: Sep 1st low.

• 1.4085: the bottom of the descending channel on the hourly chart.

Resistance:

• 1.4357: the most important resistance for today, which combines the top of the channel with the moving average SMA100.

• 1.4502: Dec 15th low.

• 1.4596: Fibonacci 38.2% for the whole drop from 1.5139 to 1.4260.

Forex trading by Munther Marji for Forexpros. See Forexpros for Forex charts and other trading tools.