Foreign Exchange Market

Market analysis of divisasEuro-dollar break 1.34 area will lead to a collapse in the medium term the euro stopped only 4 pts above the resistance specified in the report yesterday, 1,3648, and remained strong, breaking the 1,3589 bracket, and successfully the first proposed objective of 1,3496. Also came close to the second objective of 1,3442 (yesterday’s low was 1.3459). We observe in the attached graph, downward yesterday came very close to trendline slightly surpassing 1,3422, in the measure that could be considered a third touch of the line. Thus, this line has gained more importance. Generally speaking, when the price stops and creates a series of funds that are so close to each other (1,3442, 1,3450, and 1,3459 of yesterday), and provides us with a slightly increasing trend line as it is the case, a rupture of this line will translate into a great movement in the medium term, which is to be expected here.

A breakdown of this line could result in a motion approaching 1.30 in a very few weeks. For the short term, the aforementioned line provides support at 1.3465, and if it breaks, we see fall to the euro to 1,3390 and 1,3299. Resistance is provided by 61.8% Fibonacci in the short-term to 1.3578, and if the euro breaks going to take breath, and jump to 1.3652, and perhaps even 1.3740. Support: 1,3465: trend line going slightly from 1,3422. 1,3390: High on April 13. 1,3299: High on April 24. Resistance: 1,3578: Fibonacci 61.8% for the short term. 1,3652: Level of important resistance on hourly charts. 1,3740: Known previous resistance area. Pound dollar huge drop, focusing on the levels in the short term.The downward trend that was described as the apparent downward trend, continued, and the pound remained under pressure for another day, but the size of the fall was impressive, with the distance yesterday between the high and the low approaching 500 pts.