For the first time in 11 days the Euro reached 1.28, penetrating the resistance in yesterday's report 1.2792, declaring that it refuses to give up. However, the rise stopped just before our target 1.2871, and the pair consolidated around 1.28 without getting very far from it, which keeps the hopes of more upside activity alive. Looking at the hourly chart, we see an obvious horizontal support at last week's high 1.2777. The drop in the Asian session stopped only 3 pips above it, to give it more importance. If we hold above this level, the current bounce is expected to add more gains. But if broken, the Euro will gradually give up the latest gains, and will drop to 1.2676 first, and at a later time to 1.2550. On the other hand, the resistance now is at 1.2825, and if broken, then the odds of breaking 1.2871 will be enormous. In this case, we expect the Euro to continue running the show, and to target relatively high levels, such as the important Fibonacci levels at 1.2959 & 1.3047. We do hope that Tomorrow's US jobs report will put an end to the boredom and frustration trading the Euro has brought in the last two weeks.

Support:

* 1.2777: last week's top, Aug 27th high, and an obvious hourly support.
* 1.2676: the bottom of the rising channel on the hourly chart.
* 1.2550: the support area containing Jul 7th & 12th lows.

Resistance:

* 1.2825: Fibonacci 61.8% for the short term.
* 1.2595: Fibonacci 50% level for the drop from the 4-month high of 1.3332.
* 1.3047: Fibonacci 61.8% level for the drop from the 4-month high of 1.3332.