In what may be considered some kind of a surprise, the Euro broke the falling channel on the hourly & 4-hour charts at 1.2270 during the Asian session! This break could cause a lot of excitement before the weekend. It is only logical to expect more rise after this break.

But we will not put our bets on it, before breaking the last top inside the broken channel, which was 1.2351. This is for the short term, but for the medium term, the Euro will stay weak until it breaks 1.2456 in a real and decisive way. So, today's resistance is at 1.2351, and only after a break here we would expect a continuation of the rising move. If this break happens, the first target will be a test of the single most important resistance for the time being 1.2456.

And if this one is also broken, then 1.2560 will be a first & modest target, on the way to higher targets later. On the other hand, the support is at 1.2280, and breaking it would mean that the Euro's channel break is losing momentum and effect, and that the price will resume its downtrend. The targets for such a break would be 1.2174, and then the last important support before the 1.20 level, which is at 1.2068.

Support:

1.2280: the rising trend line from yesterday's low on intraday charts/

1.2174: yesterday's low.

1.2068: Apr 13th 2006 low, the last important support before 1.2000.

Resistance:

1.2351: the last top on the series of tops defining the broken channel, which was broken during the Asian session.

1.2456: Fibonacci 61.8% for the drop from 1.2670.

1.2560: May 24th high.