The Euro stopped at the resistance established in Friday's report 1.4772 with amazing accuracy, a stop which was a signal that we are heading to areas below 1.47. And now, there is a resistance that combines the rising trendline drawn from 1.4566, and the falling trendline drawn from 1.4816, and is currently at 1.4725, if price stay below it, we are heading south.

The probability of more downside grows with a break of the nearby support 1.4693. Such a break would signal more of the drop, to test one or some of the important support levels in the 1.46 & 1.45 areas such as 1.4645, 1.4613, 1.4575, down to 1.4509. The most important resistance is short-term is of course 1.4725. If broken, the Euro will be able to reach areas above 1.48, first of which is 1.4824, then new highs above the tops of September 22nd & 23rd, the most attractive of which is 1.4901.

Support:
• 1.4693: short-term support.
• 1.4645: Previous intraday resistance.
• 1.4574: Previous intraday support.

Resistance:
• 1.4725: an area combining the rising trendline from 1.4566, and the falling trendline from 1.4816.
• 1.4761: previous daily high.
• 1.4826: previous daily high.

USD/JPY

The Dollar-Yen is testing the limit of the downtrend, which is represented by the falling trendline from August 9th top, and if it is broken, then the Dollar would be invited to show how deep its real strength is over a series of resistance areas starting at 90.67 and reaches 91.63. The resistance that is attached to this line is 90.29, and if broken, then the line is broken, and the next stop would be 90.67 which is an important stop on the way to the most important stop in these areas 91.63. Short-term support is at 89.32, and if broken the direction would be down to test the important support 88.68, which must hold to prevent another attempt to test 87.97 which survived last week's attempt for a break.

Support:
• 89.32: short-term support.
• 88.68: support area that supported the price twice this month.
• 87.97: Jan 23rd low.

Resistance:
• 90.29: the falling trendline from Aug 9th top.
• 90.67: previous support.
• 91.12: previous support & resistance area.

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.