The Euro posted some solid gains against the Dollar in the last 24 hours. Investors bought on the news after the ECB cut its benchmark rate by 50 basis points, in line with expectations.

However, the rally doesn't seem to have any legs yet as investors await the release of America's official Unemployment Rate. While we may see some more near-term gains in the EUR/USD, the rally may be deflected by our 1st tier downtrend line.

The medium-term downtrend of the EUR/USD is still in command with the EU economy suffering and the Eastern European economies faltering. The EUR/USD faces multi-tiered downtrend lines and the highly psychological 1.30 area.

If the U. S. Unemployment Rate is worse than expected, then we could see the EUR/USD follow U. S. equities lower due to their strong positive correlation. Fundamentally, our 1.2677 and 1.2634 resistances turn support with additional supports sitting at 1.2592 and 1.2549.

To the topside, we maintain our resistance of 1.2725 with 2nd tier and top-end resistances hanging at 1.2794 and 1.2860, respectively.

The EUR/USD is currently exchanging at 1.2706.

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