The Euro broke the resistance specified in Friday's report 1.3374 and successfully reached the first suggested target 1.3489. But what is more important is the gaps which took place at the new week's open, and managed to create a major technical event, which is breaking the medium term trend line, which is the line falling from 1.5139 on daily chart. This line, which we focused on all last week, is an important one, which managed to frustrate the Euro's attempts to rise for the past 3 months, and now it gives way, how much will that has an effect on the EURUSD? We can say that the Euro is finally free from downside pressure on the medium term, and that it will be shooting for areas hundreds of pips higher than current ones, in the next few days and weeks. But there is an important condition for this, and that is to keep trading above the broken line. As for the short term, the resistance is at 1.3709, and breaking it would indicate a continuation in this rising move. The next set of targets will be 1.3794 then 1.3861. As for the support, it is at 1.3648, and breaking it would indicate a correction for the whole move up from 1.3281, with the ideal target-area for this correction between 1.3534 & 1.3437.

Support:

* 1.3648: the rising trend line from the after-open low.

* 1.3534: Fibonacci 38.2% for the rise from 1.3281.

* 1.3437: Fibonacci 61.8% for the rise from 1.3281.

Resistance:

* 1.3709: Fibonacci 23.6% for the whole drop from 1.5143 to 1.3266.

* 1.3794: Mar 12th high.

* 1.3861: Jan 29th low.