Euro / Dollar Technical Forex Analysis for Forex Traders

As expected, the Euro landed hard after breaking the support we specified in Friday’s report 1.2791, dropping more than 125 pips, and stopping only 3 pips before meeting our target @ 1.2660. With this new extension to the medium term drop from 1.3332, the size of this drop has become enormous, and cannot be ignored. Last week, we suggested a wave count with 5 complete waves up from 1.1875. But, until this moment, we have not reached but only the first Fibonacci retracement level for the 5-wave move at 1.2775. Therefore, in spite of the size of this drop, we highly doubt that it has shown all its cards. We believe this drop is capable of reaching Fibonacci 50% at least, or even go lower than that. But, what increases the risk in these areas, is that after such a huge move, the Euro is subject to a correction at any time, and from any level. Short term support is at the Asian session low 1.2688. A break here would be a confirmation that we are heading to Fibonacci 50% at 1.2604, and at a later time 1.2522. On the Other hand, resistance is at 1.2791, this pair cannot continue achieving gains unless we break the resistance 1.2791. In case we get this break, we will be heading to 1.2919 & 1.2998.

Support:

• 1.2688: Asian session low.

• 1.2604: Fibonacci 50% for the whole rise from 1.1875 to 1.3332.

• 1.2552: Jul 13th low.

Resistance:

• 1.2791: the falling trend line from Aug 6th high on the intraday chart.

• 1.2919: Fibonacci 38.2% level for the drop from the 3-month high of 1.3332.

• 1.2998: Fibonacci 50% level for the drop from the 3-month high of 1.3332.