As the new week started, The Euro consolidated just below Friday’s low, reaching 1.2733 before rebounding fast to 1.2869. Such a rebound is considered very “modest” comparing to the drop it followed, which came very close to 600 pips! We can clearly see that we have not even reached the first Fibonacci level 38.2%. Technically, the most important event was dropping to another important trend line, which is the rising trend line from June 7th low (please refer to the attached chart). This line which was tested accurately yesterday, is at 1.2759. But before we think about it, there is another support worth mentioning which is 1.2822. If this level is broken, we will be already on the way to test the important trend line at 1.2759 as a first target, and if broken we will see the Euro dropping hard to 1.2660. On the other hand, yesterday’s trading showed that resistance is at 1.2872. Only with a break here will the Euro be able to move forward. If we get this break, we think that the price will rise with the target of reaching Fibonacci levels 1.2962 & 1.3033.

Support:

• 1.2822: the rising trend line from yesterday’s bottom on the intraday charts.

• 1.2759: the rising trend line from Jun 7th low on the hourly chart.

• 1.2660: Jul 6th high.

Resistance:

• 1.2872: previous well known resistance.

• 1.2962: Fibonacci 38.2% level for the drop from the 3-month high of 1.3332.

• 1.3033: Fibonacci 38.2% level for the drop from the 3-month high of 1.3332.