The Euro broke the resistance 1.2127 which we said that it “will be very positive for the short term”, and successfully reached the first suggested target 1.2176, confirming the “break of the downtrend” which we talked about on Friday. There is no doubt that the Euro has broken the trend, but that is only for the short term. We should not confuse this actual trend break and the change in direction for the short term, which the persisting downtrend for the medium term which is still going strong. This break has passed the first challenge on Friday by breaking 1.2127, but it is invited to another equally important challenge at 1.2214 today. If the Euro is to continue with its rise, it should break this resistance and should not stop at or near it. In case we do break this resistance the targets will be 1.2295 first, and then 1.2352. On the other hand, the support is at 1.2166, and if we break it, then this “hot” rise will go cold, and we will fall targeting the important 1.2106, then 1.2044.

Support:

• 1.2166: important intraday support.

• 1.2106: Fibonacci 61.8 for the short term.

• 1.2044: Friday’s low, and the retest level of the broken trend channel.

Resistance:

• 1.2214: June 4th high.

• 1.2295: May 20h low.

• 1.2352: May 1st high.