The Euro broke the resistance specified in yesterday’s report 1.2254, and successfully reached the first suggested target 1.2295 and came very close to the second suggested target 1.2352, stopping only 4 pips before it (yesterday’s high was 1.2348). The Euro proved that it is still capable of going higher, which created a small surprise for us. Yesterday’s top came very close to this month’s top, which was reached on the first day of it: 1.2352. This proves how important this resistance is, that is why it will be our resistance of the day. After hitting yesterday’s top, the price retreated to 1.2307. This retreat, from a well known resistance & a target area means that the “hot” rise for the Euro is going cold! If we break the short term support 1.2307, the Euro will probably give up the latest gains. And it will target the ideal correction targets for the whole rise from 1.1875, which are 1.2167 & 1.2056. On the other hand, the resistance is at 1.2352, and as long as we are below it, dropping more & more from yesterday’s top will be expected. But if we break it we will target the important 1.2452, and later 1.2519.

Support:

• 1.2307: important intraday support.

• 1.2167: Fibonacci 38.2% for the whole rising move from last weeks low to yesterday’s high.

• 1.2056: Fibonacci 61.8% for the whole rising move from last weeks low to yesterday’s high.

Resistance:

• 1.2352: June 1st high.

• 1.2452: the descending trend line from Apr 14th high.

• 1.2519: May 6th high.