For the second day in a raw, the Euro didn’t even come close to the support specified in yesterday’s report 1.2903, finding a bottom at 1.2967, and refusing to drift away from the 1.30 level for more than a third of a cent, before trying to break 1.3026, only to stop 2 pips above it. Therefore, we await a test of the set of important resistance levels in the neighborhood 1.3026, 1.3044, and 1.3035, the last of which is our favorite, since it is presented by the trend line drawn from Tuesday’s high on hourly chart. But, we will not lose interest in our newly found rising channel we talked about yesterday, and when we look at the hourly chart, we find that Friday’s dive has stopped at the bottom of a new rising channel which will be placed under our focus for today, knowing that the bottom of the channel is just below 1.2980. Moreover, we find the area between Fibonacci 61.8% at 1.3075 and May 10th top 1.3092 to be very interesting. Thus, we recommend giving attention to all these areas, and we believe that each of them will play a role in dictating today’s direction! In case we break the support at 1.2980, we will drop with the Euro for today and probably the next few days, targeting 1.2888, and 1.2737. On the other side, the resistance is at the important 1.3035. If broken, the Euro will continue its bounce from the channel bottom, targeting 1.3092 & 1.3200.

Support:

• 1.2980: the rising trend line from Tuesday’s low on the hourly chart.

• 1.2888: Fibonacci 50% for the whole rising move from Jul 21st bottom to Jul 27th top.

• 1.2737: a well known support resistance area, which includes a number of daily extremes, such as May 12th high, and Jul 22nd low.

Resistance:

• 1.3035: the falling trend line from Jul 20th top & 2-month high on the hourly chart.

• 1.3092: May 10th high.

• 1.3200: Apr 23rd low.