Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke short-term support 1.4744 and successfully reached the first suggested target 1.4649. But the point where yesterday's drop stopped, uncovered a very harmonized channel, and price has touched its lines a whole 7 times. Yesterday's low was exactly at the bottom of that channel, as the attached chart shows (hourly chart). We will monitor this channel to try and specify the direction, and we strongly believe that if this channel is broken to the downside, the medium-term price direction will be in a downtrend.

The bottom of the channel is currently at 1.4649 which makes this level the most important support for the short-term. On the other hand, resistance congregate its power in one important area, where we find the falling trendline from 1.5061, the moving average SMA100, and Fibonacci 61.8% for the short-term at 1.4762 (calculated for the 5 waves dropping from 1.4843 to the orthodox bottom 1.4631 and not the price bottom 1.4625), which clearly makes this area the most important of all resistance levels. A break of the 1.4649support will put the Euro under pressure and that would push it lower to 1.4559, then the important bottom 1.4480, and later to 1.4404. While a break of the resistance 1.4762 ill givethe Euro a chance to catch a break and to correct upwards towards 1.4846 and may be 1.4897.

Support:

• 1.4649: the bottom of the coordinated channel on the hourly chart, and the most important support for medium-term.

• 1.4559: Fibonacci 38.2% for medium-term.

• 1.4480: Oct 2nd low.

Resistance:

• 1.4762: important resistance area combining Fibonacci 61.8% for the short-term, the moving average SMA100, and the falling trendline from 1.5061..

• 1.4846: Fibonacci 50% for the drop 1.5061.

• 1.4897: Fibonacci 61.8% for the drop 1.5061.