The Euro broke the support 1.3355, but managed somehow to hold above 1.33. The fact that the Euro has traded above 1.33 after this break is a result of approaching a new channel's bottom. This channel which we present to you today on the attached chart, helped the Euro survive above 1.33, but will it succeeds in doing in doing so today? We see the most important support for short term is the nearby 1.3319, and breaking it would give the Dollar a push, driving this pair to new lows for this wave. We see that breaking this support will result in breaking 1.33 and then creating a strong move targeting 1.3212 and then 1.3113, as we approach the important 1.30 level. As for the resistance it is at 1.3356, and breaking it would indicate we are targeting the top of the channel at 1.3420. And if this resistance is broken, the technical picture will improve, dramatically, and we will see the Euro bringing out a few surprises, which will lead to the test of the very important falling trend line for the long term, which is at 1.3517.

Support:
* 1.3319: important intraday support.
* 1.3212: May 4th low.
* 1.3113: Mar 30th 2009 low.

Resistance:
* 1.3356: the top of the falling channel on hourly chart.
* 1.3420: the top of the falling channel from Friday's low on hourly chart.
* 1.3517: the falling trend line for the long term on the daily chart.