Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro benefited from the US jobs report to approach 1.29 on Friday, and penetrated it after the market opened again last night. It seems like the Euro is targeting the top of the rising hourly channel which is illustrated on the attached chart. This top is at 1.2920, which is also Aug 18th high. When we take look at the hourly chart, we can spot an interesting support at 1.2777. This support is formed by Aug 27th high, and on Thursday, the price stopped 3 pips below it during the Asian session and 2 pips above it during the European sessions, which adds to its importance. Moreover, the rising trend line from Aug 31st low is now at 1.2837, providing the most important short term support. So, we will be in a neutral zone between 1.2920 & 1.2837, waiting for a break! If we break the resistance 1.2920, nothing will stop the Euro from reaching 1.3000, then the most important short term resistance 1.3047. On the other hand, support is at 1.2837, and if broken, we will drop to test the important 1.2777, and if broken, a strong drop will target 1.2676.

Support:

• 1.2837: the rising trend line from Aug 31st low.
• 1.2777: last week’s top, Aug 27th high, an obvious hourly support, and the rising trend line from Aug 31st low on the hourly chart. The single most important short term support without a shadow of a doubt.
• 1.2676: the bottom of the rising channel on the hourly chart.

Resistance:

• 1.2920: the top of the rising trend channel on the hourly chart, and Aug 18th high.
• 1.3000: psychological level.
• 1.3047: Fibonacci 61.8% level for the drop from the 4-month high of 1.3332.