Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro did not move enough to penetrate the support or resistance specified in yesterday’s report. But, when we investigate the rising move from 1.2586, we see that it is a correction for the previous dive from 1.3332, which topped very close to the Fibonacci 61.8% level. Yesterday’s high was 1.3035, the highest level since August 11th, whereas the important resistance is at 1.3047 (please refer to the attached chart). This resistance will determine everything for the medium term. If we break it, we will literally fly, and if we fail close to it, this pair will be frustrated and move south. That is why it will be our resistance of the day. If broken, we will target 1.3145 & 1.3237. On the other hand, it would sound bizarre to say that the Euro is weak, and we will not say that. But we do believe that as long as it is below 1.3047, it will be vulnerable. The first sign of a failure at 1.3047 will be going back to trade below 1.2973. If this happens, expect a big drop, targeting 1.2855 first, then the important and strong 1.2764.

Support:

• 1.2973: the rising trend line from

• 1.2885: Fibonacci 50% for the rise from 1.2643.

• 1.2764: Sep 9th high.

Resistance:

• 1.3047: Fibonacci 61.8% for the medium term. The most important resistance level at the moment.

• 1.3145: Aug 3th low.

• 1.3194: Aug 4th high.