The Euro jumped after the market's open and continued a bounce it started on Friday, going back above 1.28. Now the question is will the EUR succeeds in creating yet another test of 1.2920? In fact, we do not believe it will, and even if it did, this will provide a selling opportunity. At the time these words are written, the EUR is trying to break short term 61.8% Fibonacci level (please refer to the attached chart). We believe that surpassing this level will be easy, as our eyes are set on the last important level before 1.2920, which is 1.2853. Our strategy for today will be waiting for the Euro to reach this high, in order to sell with a stop/reverse above 1.2920. Therefore, the resistance levels are 1.2853, and 1.2920 which if broken will leave our negative outlook void, and we will target 1.3047. But, as long as we are below 1.2920, this pair is a "sell". On the other hand, the support is at 1.2764, then there is 1.2724 which would make an ideal target for a sell at 1.2853. Then there is 1.2658 & 1.2608.

Support:

1.2764: the rising trend line from Friday's low on intraday charts.

1.2658: Wednesday's low.

1.2608: Aug 25th low.

Resistance:

1.2853: Sep 1st high, and the last important resistance before 1.2920.

1.2920: Aug 19th top.

1.3047: Fibonacci 61.8% for the medium term.