The Euro broke the resistance 1.3933, and although the rising move did not reach 50 pips, but closing above it indicates that this is a valid break, and makes us believe that the short term down trend is over.

This break faces a difficult resistance at Monday's top 1.3985, and if this break is serious, we should see a break for this resistance specifically. Breaking resistance 1.3985 will initiate a correction for the whole drop from 1.4577, targeting 1.4062 first, then ideal targets start at 1.4128. On the other hand, support is provided by the rising trend line from Monday's bottom
1.3851, which is currently at 1.3930. Breaking this support means that we will test the important 1.3824, and if broken, targets start at 1.3747.

Support:

* 1.3930: the rising trend line from this week's low on intraday charts.

* 1.3851: this week's low so far.

* 1.3747: Jun 16th low.

Resistance:

* 1.3985: Jan 29th high.

* 1.4062: Fibonacci 61.8% for the last drop from 1.4192.

* 1.4128: Fibonacci 38.2% for the whole drop from 1.4577.

Forex Trading Analysis written by Munther Marji for http:// www. forexpros. com.