Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro went on with its bounce from the bottom it reached shortly after the weekly open 1.2733, and scored a high at 1.2914, before dropping to the support we specified in yesterday's report 1.2822 down to the pip. Such a rebound is considered very "modest" comparing to the drop it followed, which came very close to 600 pips! We can clearly see that we have not even reached the first Fibonacci level 38.2%. Technically, the most important event was dropping to another important trend line, which is the rising trend line from June 7th low (please refer to the attached chart). This line which was tested accurately on Monday, is at 1.2802. If this level is broken, we will be already on the way to test this week's low at 1.2733 as a first target, and if broken we will see the Euro dropping to 1.2660. On the other hand, resistance is at 1.2879. Only with a break here will the Euro be able to move forward. If we get this break, we think that the price will rise with the target of reaching Fibonacci levels 1.2962 & 1.3033.

Support:

. 1.2802: the rising trend line from Jun 7th low on the hourly chart.

. 1.2733: this week's low so far.

. 1.2660: Jul 6th high.

Resistance:

. 1.2879: short term Fibonacci 61.8% level.

. 1.2962: Fibonacci 38.2% level for the drop from the 3-month high of 1.3332.

. 1.3033: Fibonacci 50% level for the drop from the 3-month high of 1.3332.