Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the resistance specified in yesterday’s report 1.2214, and successfully reached the first suggested target 1.2295 with stunning accuracy (yesterday’s high was 1.2296). After that, the single currency dropped for more than 100 pips so far, which confirms what we have said that we should not confuse this actual trend break and the change in direction for the short term, with the persisting downtrend for the medium term which is still going strong. This retreat, from a well known resistance & a target area means that the “hot” rise for the Euro is going cold! If we break the short term support 1.2187, the Euro will probably give up the latest gains. And it will target two important levels: 1.2086 first, then the support provided by the rising trend lien from the 4-year low, which is at 1.2007. Needless to say that this is a very important level. On the other hand, the resistance is at 1.2254, and as long as we are below it, dropping more & more from yesterday’s top will be expected. But if we break it we will target 1.2295 again, and later 1.2352.

Support:

• 1.2187: important intraday support.

• 1.2086: Fibonacci 61.8 for the whole rising move from last weeks low to yesterday’s high.

• 1.2007: the rising trend line from last week’s low

Resistance:

• 1.2254: short term 61.8% Fibonacci.

• 1.2295: May 20h low.

• 1.2352: May 1st high.