Moving steady inside the falling channel on the intraday charts, the Euro approached the top of the channel five times, without breaking it, which indicates that the falling trend (for the short-term is still safe. As long as price does not break this channel to the upside, the short-term downtrend will go on, and try to reach the end of the channel, which is below 1.45, during this week.

On the other hand, if price manage to break this channel to the upside, the Euro will be free from the falling trend, and will try to reach new tops over 1.48, this week also. The most important resistance is 1.4639, which represents the top of the falling channel. Breaking this "top" will mean that we are on the way to areas above 1.47, most important of which are 1.4720 and 1.4776. The most important support is 1.4597, and breaking it means that the falling trend will try to reach Fibonacci 50% at 1.4509, or Fibonacci 61.8% at 1.4430.

Support:
• 1.4597: short-term support.
• 1.4509: Fibonacci 50% for the rise from 1.4176 to last week's top 1.4842.
• 1.4430: Fibonacci 61.8% for the rise from 1.4176 to last week's top 1.4842.

Resistance:
• 1.4639: the top of the falling channel on the intraday charts.
• 1.4720: the resistance area that stopped the Euro from rising 3 times late last week..
• 1.4776: previous resistance.

USD/JPY

The most important support 88.74 held and gave the Dollar-Yen a chance to break the resistance 89.68, and as expected went back above 90. The price stopped accurately (as we can see on the chart) at the previous support 90.20, which provided us with the daily lows for 11th & 16th on the month. That is why 90.20 will be the most important support for today. If the dollar fails to break it, this pair will go back to falling, after that sharp bounce from 88.22.

A break of 90.20 would give a chance to approach 91 since the first important resistance in these areas 90.90. Just above that there is the most important resistance, the limit of the downtrend 91.33, which represents the falling trendline from August 9th top. The most important support for today is 89.23 which is Fibonacci 50% for the rise from post-open low, and the bottom of the rising channel on the intraday charts. If we break 89.23 that would mean we are on our way to break the 8-month low at 88.22, in this case 87.97 and 87.10 look like the most possible targets of the next leg down.

Support:
• 89.23: Fibonacci 50%, and the bottom of the rising trend channel on intraday charts.
• 88.56: previous intraday support.
• 87.97: Jan 23rd low.

Resistance:
• 90.20: the previous support that stopped the current rise, and a support area that includes the daily lows of 11th & 16th of the month.
• 90.90: previous intraday support/resistance.
• 91.33: the limit of the downtrend, the falling trendline from Aug 9th top.

Analysis by: http://www.Forexpros.com - Written by Munther T. Marji

Forexpros offers the most definitive Forex portal on the web. It contains industry leading market analysis, up-to-the minute news and advanced trading
tools which provides brokers, traders and everyone involved in the financial market with an all-round guide to Forex.

Disclaimer: Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

ForexPros Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.