We came close to the ideal target for this correction: 91.74 (Fibonacci 50% retracement, SMA100 on the hourly chart & the previous important support 91.73-91.76), and reached 91.63 yesterday. And now, the falling trend channel is exactly at this level, which makes it the most important resistance for today, more important than 92.10. Although the ideal target for the current correction will still be 91.74, there is a possibility to target 92.10, but when we compare these two targets, we find that the most important is 91.74 since it combines a Fibonacci resistance, and a previous support, and even more important the top of the falling channel.

As for the support, short-term Fibonacci support at 90.77 has proven its importance when the price bounced from there twice, once before reaching yesterday's high, and once after. We believe that breaking 91.74 or 90.77 is what will decide the direction of the next hours, and may be the next few days. Breaking the resistance 91.74 will take the price up at least to 92.10, and may be to test the top 93.28. Breaking the support 90.77 would mean that the correction is over, and the down trend is back on track targeting 89.78-89.68.

Support:

• 90.77: Fibonacci 61.8% support for short-term, which survived twice until now.

• 90.29: short-term support.

• 89.68/78: important support area containing the lows of Feb 11th, 12th & Dec 29th 08.

Resistance:

• 91.74: Fibonacci 50% for the last move falling from 93.28, the most important resistance for today.

• 92.10: Fibonacci 61.8% for the same move.

• 92.70-92.80: previous support area which contains a number of daily lows in the past few months.

Forex trading analysis by forexpros.com - Written by Munther T. Marji