Monday’s headline for the EURUSD was “Slowly rising, signaling weakness”, and the Euro listened, and kept on falling from the weekly open, losing more than 140 pips from yesterday’s Asian session high. And with this drop, the pair broke our support 1.2643 only to disappoint and drop less than 20 pips below it. But the surprise came yesterday just after the NY open, when the Euro bounced and jumped from its 5-day low at 1.2624, to 1.2741. This surprising jump could mean that the single currency has not given up yet, and that it will try to overcome a negative outlook. Short term resistance is at 1.2792, and breaking it will mean that it is able of achieving more games. The targets will be 1.2871 & 1.2959. The support is at 1.2684, and if broken, the drop will be resumed to the attractive 1.2550, and later to the all important 1.2432.

Support:

• 1.2684: Fibonacci 61.8% short term.

• 1.2550: the support area containing Jul 7th & 12th lows.

• 1.2432: Fibonacci 61.8% for the whole rise from 1.1875 to 1.3332.

Resistance:

• 1.2792: Fibonacci 61.8% for the drop from 1.2920.

• 1.2871: Fibonacci 38.2% level for the drop from the 4-month high of 1.3332.

• 1.2595: Fibonacci 50% level for the drop from the 4-month high of 1.3332.