The Euro broke the resistance specified in yesterday's report 1.2693, but could not climb more than 45 pips after that, before tumbling down & approaching 1.26. But this decline, has found our favorite support which we talked about yesterday, waiting! The drop stopped at 1.2610, only 2 pips above the all important 1.2608. Today, this support will still be the most important support, because it managed to stop the drop twice: the first late in Tuesday's Asian session, and the second shortly after the US markets closing on Wednesday. If the price holds above this support, it will finally have a break, and we could see a rising correction after this drop of more than 500 pips in less than 48 hours! Today's resistance is at 1.2688, and breaking it would indicate we are already in a rising correction for the whole drop from 1.3092. The ideal targets for such a correction are 1.2790 & 1.2848, which we will focus on for today. Later, the price may reach the third and ideal target for this correction at 1.2906. Support is as we said, at the all important 1.2608, and breaking it would drag the price to 1.2511 then to a fresh cycle low at 1.2455.

Support:

* 1.2608: important intraday low.

* 1.2511: last week's & one-year low.

* 1.2455: Mar 4th 2009 low, an important bottom.

Resistance:

* 1.2688: Fibonacci 61.8% for the drop from yesterday's top.

* 1.2790: Fibonacci 38.2% for the drop from 1.3092.

* 1.2848: Fibonacci 50% for the drop from 1.3092.