Although the Euro penetrated 1.30 and reached 1.3026, it dropped hard, breaking the support of yesterday’s report 1.2952, and bottoming just ahead of our suggested target and at 1.2838. With that, we have even more evidence of a reversal, most important factors in this conception are: 1. No daily close above 1.2997 & 2. A “reversal day” pattern for yesterdays bar/candle on the daily chart. This shows just how important the area around 1.30 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% by closing above it). Now, even after a drop of more than 190 pips from yesterday’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 down to 1.2869, breaking it would indicate that we are drifting away from 1.2997. And that will target 1.2764 & 1.2707.

Support:

• 1.2869: Monday’s low.

• 1.2764: Fibonacci 50% for the short term.

• 1.2707: Fibonacci 61.8% 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.