The Euro broke the resistance specified in yesterday's report 1.2603, and successfully reached the first suggested target 1.2681 with a very good accuracy since yesterday's high was 1.2686. The most important technical event, was touching the top of the rising channel on the hourly chart for the third time during the Asian session, after touching it for the first time on Friday, and the second on Tuesday. We could be before an important turning point at 1.2686, but until this moment we have not got far from the top of the channel. We should carefully watch the top of this channel, which is at 1.2690 currently. We will not be able to escape the fact that a break here will be a very positive signal for both the short & medium terms. But, if we keep trading below this top, we could be facing a turning point which will probably lead to a drop of hundreds of points. Short term support is at 1.2644, and once we break it, we will start drifting away from the channel top, and will target 1.2552, and may be 1.2442. The resistance is at the channel top at 1.2690. If this broken, we will target 1.2801 first, and may be 1.2906 before the end of the week.

Support:

* 1.2644: Asian session low.

* 1.2552: yesterday's low.

* 1.2442: May 18th high.

Resistance:

* 1.2690: the top of the falling channel on intraday charts.

* 1.2801: May 11th high.

* 1.2906: previous well known support/resistance area.