After the rocketing rise, from 1.2142 to 1.2670 late last week, the Euro retreated back to 1.2480. This drop has came very close to the rising trend line from this cycle’s low on the hourly chart 1.2142, which is currently at 1.2492. We believe that a break of this line (in case it happens) will be the technical event of the day. We can not just guess the direction before the test of this line. The general trend is down, but the rise from 1.2142 has shown enormous strength. In such a case, waiting for the test of the trend line is the best thing one can do. In case this support is broken the rocketing short term trend will be over, and the Euro will be back to falling, and going along with the general trend. Today’s targets will be 1.2406 & then 1.2295. In case this resistance is broken, the price will continue its advance upside, and the targets for the next 24 hours will be 1.2639, and the very important 1.2729.

Support:

• 1.2492: the rising trend line from Wednesday’s lows on hourly chart.

• 1.2406: Fibonacci 50% for the rise from this cycle low, and the 4 and a half years low.

• 1.2295: important intraday bottom from Thursday’s trading.

Resistance:

• 1.2545: the falling trend line on intraday charts.

• 1.2639: important intraday resistance.

• 1.2729: Fibonacci 61.8% for the drop from 1.3092.