The Euro broke 1.4014, and dropped as expected, stopping only 8 pips before our suggested target 1.3928. But the sharp n swift bounce that brought us back above 1.40 may threaten this break, so will it hold? Looking at the hourly chart, we can see that the Euro, and before breaking 1.4014, has stopped at the falling trend line from 1.4554 for a third time, which makes this line one that deserves attention.

The downtrend from 1.4577 will be dominant as long as we are below this line, which is currently at 1.4065, that's why it is resistance of the day. While the support is at
1.3969, and breaking either of these levels will set the direction for the next hours. Breaking resistance 1.4065 will initiate a correction for the whole drop from 1.4577, with ideal targets at 1.4181 & 1.4257. On the other hand, breaking support at 1.3969 means that we will leave the 1.39 areas after a swift visit and head toward the 1.38s where
1.3888 & the important 1.3824 awaits.

Support:

* 1.4014: Fibonacci 61.8% for the short term.

* 1.3888: Jun 24th & 25th low.

* 1.3857: Dec 19th 2008 important low.

Resistance:

* 1.4065: the falling trend line from 1.4554 on the hourly chart.

* 1.4181: Fibonacci 38.2% for the whole drop from 1.4577.

* 1.4257: Fibonacci 50% for the whole drop from 1.4577.