Although the Euro broke the support specified in yesterday’s reports 1.2889, but it did not reach or even come close to the suggested target 1.2820, as if it was still not ready to drift away from 1.30 yet. On Friday, the Euro topped at
1.3005, just 8 pips above the resistance that captured all of our attention: 1.2997. This shows just how important this resistance is, which is probably the level most qualified to turn the Euro around, and resize this soaring move into a correction! This strong & sharp jump is a natural fruit of breaking the top of the channel after touching it for a record number of times, but eventually the Euro managed to break it! After that serious barrier, the energized Euro had faced even a harder one: Fibonacci 61.8% for the giant move down from 1.3690 to 1.1875. This level is at 1.2997, and will act as a heavy weight barrier in the face of this rise, which in spite of the fact that it has achieved more than
1000 pips so far, it still looks corrective (simply because it did not break the divine ratio 61.8%). Now, even after a drop of more than 130 pips from Friday’s top, 1.2997 will still be the most important resistance in the neighborhood, only a break here means more gains. If broken, we will soar above 1.30 for the first time in more than 2 months, and we will target 1.3092 & 1.3153. On the other hand, the support has shifted dramatically to 1.2952, breaking it would indicate that we are drifting away from 1.2997. And that will target 1.2820 & 1.2764.

Support:

• 1.2952: the rising trend line from Jul 13th low.

• 1.2820: Fibonacci 38.2% for the short term.

• 1.2764: Fibonacci 50% for the short term.

Resistance:

• 1.2997: Fibonacci 61.8% for the massive dive from 1.3690 to 1.1875.

• 1.3092: May 10th high.

• 1.3153: May 3th low..