The Euro stopped ahead of the resistance specified in yesterday’s report 1.2563 (the high for the past 24 hours is 1.2556). Later, it dropped, breaking the support specified in the report 1.2527, and went down as expected, but only to find another support at 1.2479, standing between it & its target at 1.2451. The most important technical event, was approaching the top of the rising channel on the hourly chart on Friday. We could be before an important turning point at 1.2609, since we saw the price falling away from this level yesterday. We should carefully watch the top of this channel, which is at 1.2656 currently. We will not be able to escape the fact that a break here will be a very positive signal for both the short & medium terms. But, if we keep trading below this top, we could be facing a turning point which will probably lead to a drop of hundreds of points. Short term support is at 1.2510, and once we break it, we will start drifting away from the channel top, and will target 1.2442, and may be 1.2370. The resistance is at 1.2570, and if broken we will target another test of the channel top at 1.2656. If this one is also broken, 1.2737 will be a first & modest target for this break, on the way to higher targets.

Support:

• 1.2510: important intraday level.

• 1.2442: May 18th high.

• 1.2370: May 25th high.

Resistance:

• 1.2570: important intraday resistance.

• 1.2656: the top of the falling channel on intraday charts.

• 1.2737: May 12th high.