The Euro jumped strongly yesterday, even though it initially broke the support specified in yesterday’s report. We broke the important level specified in yesterday’s report 1.2920, and successfully reached the first suggested target of 1.3000. We have seen the EURUSD jumping more than 100 pips above the massive 1.2920, this shows that even when they are broken, important levels provide good trading opportunities just as when they hold and reverse the trend.

During the Asian session the Euro dropped to create a correction of 38.2% of yesterday’s jump. It stopped with astonishing accuracy at the short term Fibonacci 38.2% level, bottoming at 1.2954, just 1 pip above the Fibo level. This will be our support for today, and if broken, we expect the drop which has gained 80 pips so far to go on.

Targets will be 1.2886 & 1.2764. On the other hand, yesterday’s rise almost made it to the all important medium term 61.8% Fibonacci level at 1.3047. this is the most important resistance level for now, if broken we will be on the way to levels above 1.31, the most important of which are 1.3118 & 1.3194.

Support:

• 1.2954: Asian session low & short term Fibonacci 38.2% level.

• 1.2886: the rising trend line from Friday’s low on the hourly chart.

• 1.2764: Sep 9th high.

Resistance:

• 1.3047: Fibonacci 61.8% for the medium term. The most important resistance level at the moment.

• 1.3118: Aug 5th low.

• 1.3194: Aug 2nd high.