EUR/USD dipped below another important support line and is getting used to a new range. Will it settle in a lower range next week? Not so fast. Here’s an updated technical look at EUR/USD. The reasons for the fall start in Greece and end at Washington or Beijing – the EUR/USD bears are everywhere. But there’s a big bear-fence below… At first, the Euro made an initial dip below 1.40. EUR/USD fell to 1.3937 before rising back up to 1.4040. This sharp swing was short-lived. This large move seemed at first as a false break – a false break at a major scale. As the hours passed, 1.40 was breached again. EUR/USD is at 1.3960. Although this is higher than the initial dip, it lasts longer. So, after a first test, the breakout was confirmed. EUR/USD fell from a range of 1.4450 to 1.4626 two weeks ago to its previous range of 1.42-1.4450 and then last week to 1.40-1.42. Now, towards the end of another week, it falls to below 1.40. Where’s the next range? Will we see another lower range next week? The next range is 1.3750 to 1.40. After being broken, 1.40 turns into a resistance line, and 1.3750 is the next major support. And it’s a very major support line. It was the bottom line at mid-June, and was never breached since then. Before serving as a support line, it served as strong resistance line, being tested three times: twice in March and once in May of 2009. This line is very clear in many charts – many different time frames. As EUR/USD settles in the new 1.3750-1.40 range, a further drop isn’t likely in the near future. The dollar will need great force (or the Euro great weakness) to cut through this line. The current strength of the dollar and the weakness of the Euro aren’t set for such a move in the near future. As in the EUR/USD forecast, I remain bearish on this pair, but I draw the line at 1.3750. Also check out Casey Stubbs‘ frequent updates on this pair, and James Chen’s recent analysis for it. Want to see what other traders are doing in real accounts? Check out Currensee. It’s free. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Daily Outlook – January 29th 2010 Yohay Elam 13 years EUR/USD dipped below another important support line and is getting used to a new range. Will it settle in a lower range next week? Not so fast. Here's an updated technical look at EUR/USD. The reasons for the fall start in Greece and end at Washington or Beijing - the EUR/USD bears are everywhere. But there's a big bear-fence below... At first, the Euro made an initial dip below 1.40. EUR/USD fell to 1.3937 before rising back up to 1.4040. This sharp swing was short-lived. This large move seemed at first as a false break - a false break at… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.