The Euro's bounce from the bottom it reached shortly after the weekly open at 1.2733, halted yesterday at 1.2920. Such a rebound is considered very "modest" comparing to the drop it followed, which came very close to 600 pips! We can clearly see that we have not even reached the first Fibonacci level 38.2%. Technically, the most important event was dropping, and now reaching, another important trend line, which is the rising trend line from June 7th low (please refer to the attached chart). This line which was tested accurately on Monday, is running now at 1.2793, and it was touched and slightly surpassed during the Asian session, with the price bottoming at 1.2781. If this level is broken, we will be already on the way to break this week's low 1.2733 as we target 1.2660 first, then 1.2604. On the other hand, resistance is at 1.2867. Only with a break here will the Euro be able to move forward. If we get this break, we think that the price will rise with the target of reaching Fibonacci levels 1.2991& 1.3057.

Support:

. 1.2793: the rising trend line from Jun 7th low on the hourly chart.

. 1.2660: Jul 6th high.

. 1.2604: Fibonacci 50% for the whole rise from 1.1875 to 1.3332.

Resistance:

. 1.2867: important intraday level.

. 1.2991: Fibonacci 38.2% level for the drop from the 3-month high of 1.3332.

. 1.3057: Fibonacci 50% level for the drop from the 3-month high of 1.3332.