The resistance specified in yesterday’s report as 1.5871 proved its importance as yesterday’s rise stopped only 6 pips below it (yesterday’s high was 1.5865). Then the price started dropping to areas below 1.58. The technical indicators show a state of “overbnought” which leaves the possibility of a sharp correction there, but the short term trend is a rising one after breaking the 1.5728 level. This is why we strongly recommend not to pick sides today before breaking the specified support or resistance, and we believe that the short term direction will not show itself before a break! Short term support is provided by the bottom of the rising trend channel on the hourly chart, which is at 1.5784. If this level is broken , we will drop to more important Fibonacci level at 1.5684 &1.5641. On the other hand, the most important resistance for the short term is 1.5834, and probably we will not break it, but if it gives way then the party will continue! In this case, targets will be 1.5922 & 1.6000.

Support:

• 1.5784: the bottom of the rising trend channel on the hourly chart.

• 1.5684: short term Fibonacci 50% support.

• 1.5641: short term Fibonacci 61.8% support.

Resistance:

• 1.5834: the falling trend line from yesterday’s top on intraday charts.

• 1.5922: Aug 3rd high.

• 1.6000: psychological level.