Hi Wong Kok Soon & Roslin, I told you yesterday about Bullish Doji Star in chart for 5-6 hours time frame for re-bounce warning in Asian & European session from 1.1228 and shoot higher around 1.1292 before reverse back to 1.1273 as I writing this analysis. Yesterday high was only 10 pips above the micro term in 71.4% retracement at 1.1329. The price did top at the micro term Fibonacci 61.8% on Friday, and at the micro term 71.4% retracement today. Therefore, we cannot be blamed to keep our micro term bearish bias until 1.1319 is broken with a good number of pips. This expectation level resistance for today, but we also have to pay attention to a closer less important level at 1.1281.

   On the other side of the chart, the bottom of the intraday channel which can be drawn from Friday’s low is currently running just below today’s current daily low 1.1238, and this will be our first support for today. We should wait for another test or break of either level in order to obtain more info about the direction of the next sizable move. 

   A break below the current daily low 1.1238 will be a sign that the drop from yesterday’s high will continue. In this case, another test of the rising trend line from June 5th low will be expected. This line is running at 1.1220, and also provides an important support. A break below this level will further confirm the weakness with a 3rd sign (topping very close to 1.1319 & breaking 1.1238 will be the first two by then). The most interesting targets for this break are 1.1145 which was almost touched on Friday, followed by 2 very important levels at 1.1103 & 1.1096, ahead of a life & death level at 1.0981. All of these levels are retracement levels, and as it is usually the case with retracements, a bottom very close to any of these levels will be a bullish sign that may be followed by a resumption of the rising larger-degree trend, while on the other hand, the bearish potential will get better & better as we break below each of them, especially if we break below the last one. If we do break above 1.0981, the medium term bullish outlook will come under pressure, and the Euro could start losing value in a strong way. The first target for breaking 1.0981 may be 1.0886, but the real target for this break is to trade below May 27th low 1.0819.

   On the other hand, if the Euro is to continue moving higher, the bulls need to test 1.1281 the sooner the better. Breaking this level is necessary to give the bulls another chance to clear the important 1.1319. If we do break above 1.1319, there will be a good possibility to retest, and may be this time break 1.1380/92. If we break the top of this area with an enough number of pips, the price will be expected to target May’s monthly high which was seen on the 15th of the month at 1.1467. A break above this level will be expected to open the way higher towards 1.1534 & 1.1675, which make the first couple of good medium term targets. Happy Trading guys.