Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the support specified in Friday's report 1.2735, and we saw the price drifting away from the channel bottom, reaching both suggested 1.2854 & 1.2935 successfully. The most important technical event in the past week was not the exciting collapse, but reaching the bottom of the falling trend channel on the daily chart (please refer to the attached chart). And after a rebound of almost 450 pips, this bottom has proved important. We could be in front of a turning point not just for the short term but for the medium term as well.

But on the other hand, the price has reached, and stopped at, Fibonacci 38.2% for the whole drop from 1.3690 to 1.2511. This technical evidence favors that we are in a rising correction from last week's low. A correction that met its first target (Fibo 38.2%). The question now is will this correction settle for 38.2% or will it shoot to the more important Fibonacci retracement levels 50% & 61.8%? This question can be answered with staying below, or breaking 1.2966. If this resistance is broken, the correction will go on, and we will target Fibonacci 50% at 1.3105 first, then 1.3165. Here, difficulties will face this move and make it harder for it to go on. The support is at 1.2900, breaking it would indicate a drop, drifting away from 1.2966 and targeting 1.2795 & 1.2690.

Support:
* 1.2900: important intraday support.
* 1.2795: Fibonacci 38.2% for the rise from 1.2519.
* 1.2690: Fibonacci 38.2% for the rise from 1.2519.

Resistance:
* 1.2966: Fibonacci 38.2% for the drop from 1.3690.
* 1.3105: Fibonacci 50% for the drop from 1.3690.
* 1.3165: previous well known support/resistance.