Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the support specified in yesterday's report 1.2358, and dropped as expected, and reached the first suggested target 1.2260, successfully! What is funny, is that the Euro dropped more than 150 pips from the top it reached after this week's open, while the Pound reached a 7-week high above 1.51, and consolidated just below it. Therefore, it is hard to channel the direction of the European currencies against the greenback, and this in itself calls for caution. In the case of the Euro, its fall to meet our suggested target at 1.2260 is a negative sign for the short term without a doubt, If added to the fact that this drop came after the failure to break the top of the descending channel, we can see that this is also negative for the medium term as well. Today's support is at Fibonacci 38.2% for the medium term at 1.2240, which we trade just above at the time of preparing this report.

If broken, we will fall to test the more important Fibonacci levels: 50% At 1.2170, and 61.8% at 1.2100, which is the most important medium term support. The resistance is at 1.2337, and only with a break above here, this pair will improve its negative technical outlook for the short term. If broken, we will target 1.2396 once again, and if this one is also broken, we will be on the way to 1.2519.

Support:

1.2240: Fibonacci 38.2% for the whole rising move from this cycle's low to last week's high.

1.2170: Fibonacci 50% for the whole rising move from this cycle's low to last week's high.

1.2100: Fibonacci 61.8% for the whole rising move from this cycle's low to last week's high.

Resistance:

1.2337: Fibonacci 61.8% for the short term.

1.2396: the weekly high so far.

1.2519: May 6th low.