Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro jumped after the market's open and continued a bounce it started on Friday, going back above 1.28 in the morning, and hitting 1.2890 in New York. Now the question is will the EUR succeeds in creating yet another test of 1.2920? In fact, we do not believe it will, and even if it did, this will provide a selling opportunity. As we approach 1.2920, sort of (yesterday's high was 1.2890), we believe that topping and creating a medium term top to fall from for days is very possible. But there is a very critical condition to this gloomy scenario, which is to top below or close to 1.2920, and not to break this level decisively. Short term support is at 1.2853, if broken, the real journey away from 1.2920 will start. In this case we expect a strong drop to the important 1.2737, and to 1.2658, and even lower than that given enough time. On the other side, 1.2920 is definitely the resistance of the day, and only a break here will change the negative outlook. If this happens, we will target 1.3000 & the important 1.3047.

Support:

1.2853: Sep 1st high.
1.2737: short term Fibonacci 61.8%.
1.2658: Wednesday's low.

Resistance:

1.2920: Aug 19th top.
1.3000: psychological level.
1.3047: Fibonacci 61.8% for the medium term.