Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro reached a new weekly high on Friday at 1.2777, before retreating around 50 pips by the closing time. With this, the Euro continues to rise slowly, without being able to create a reaction that can be compared to the massive drop from 1.3332. This slow upside activity is actually a sign of weakness, and the rise look pretty corrective. And unless the Euro moves clearly up today, things will become hard for the single currency, and this will leave room for the Dollar to take over. Short term most important support is provided by the rising trend line from last week’s low, which is currently at 1.2675. If broken, the Euro will start to lose ground, and will probably drop hard to 1.2550, and may be at a later time to the all important 1.2432. The most important resistance for the short term is at 1.2792, and if broken we will (finally) see the Euro creating a correction that can be tied in ratio to the enormous drop from 1.3332. This correction’s ideal targets start at 1.2871, then 1.2959. While the ultimate target is at 1.3047. Excitement is coming, but we need a break first.

Support:

• 1.2675: the rising trend line from Aug 24th low on hourly chart.

• 1.2550: the support area containing Jul 7th & 12th lows.

• 1.2432: Fibonacci 61.8% for the whole rise from 1.1875 to 1.3332.

Resistance:

• 1.2792: Fibonacci 61.8% for the drop from 1.2920.

• 1.2871: Fibonacci 38.2% level for the drop from the 4-month high of 1.3332.

• 1.2959: Fibonacci 50% level for the drop from the 4-month high of 1.3332.