Euro / Dollar Technical Forex Analysis for Forex Traders

After its break of the small descending channel, the Euro reached its target for this break which is a test of the top of the main descending channel for the 3rd time! It touched, and slightly surpassed, the top of this channel (please refer to the attached chart). There is nothing more important than this test, for the short, and medium terms! But, we need a confirmation of this break: first we need the Euro to keep trading above the top of the channel, and then we need it to break the Asian session high 1.2396. If the Euro manages to provide what is needed, we will completely change our negative outlook for this pair. This is why today’s levels will be support at 1.2358 & resistance at 1.2396. If we break the resistance, this will prove that the Euro is capable of capitalizing on the break of the channel, and flying higher. The targets for this break will be 1.2519 & 1.2655. On the other hand, if we drop back inside the channel, this will indicate running out of steam, and the end of the upside adventure! In this case, the case of breaking the support 1.2358, this pair will give up gains and start dropping. Targets will be 1.2260 and may be later
1.2170.

Support:

• 1.2358: the retest level for the broken channel.

• 1.2260: Thursday’s low.

• 1.2170: Fibonacci 50% for the whole rising move from this cycle’s low to last week’s high.

Resistance:

• 1.2396: Asian session high.

• 1.2519: May 6th low.

• 1.2655: May 11th low.