The Euro didn’t even come close to the support specified in yesterday’s report 1.2872, finding a bottom at 1.2950, and refusing to drift away from the 1.30 level for more than half a cent, before trying to break 1.3026, without being able to hold above it. Therefore, once again, we await a test of the important resistance 1.3026, where there is the 2-month high. But, we will not lose interest in our newly found rising channel we talked about yesterday, and when we look at the hourly chart, we find that Friday’s dive has stopped at the bottom of a new rising channel which will be placed under our focus for today, knowing that the bottom of the channel is at 1.2903. Moreover, we find the area between Fibonacci 61.8% at 1.3075 and May 10th top 1.3092 to be very interesting. Thus, we recommend giving attention to all these areas, and we believe that each of them will play a role in dictating today’s direction! In case we break the support at 1.2903, we will drop with the Euro for today and probably the next few days, targeting 1.2792, and 1.2691. On the other side, the resistance is at the important 1.3026. If broken, the Euro will continue its bounce from the channel bottom, targeting 1.3092 & 1.3200.

Support:

• 1.2903: the bottom of the rising trend channel on the hourly chart.

• 1.2792: Friday’s low.

• 1.2691: Fibonacci 38.2% for the whole rise from 1.2150.

Resistance:

• 1.3026: Jul 20th top & 2-month high.

• 1.3092: May 10th high.

• 1.3200: Apr 23rd low.