The Euro stopped only 6 pips above the resistance specified in yesterday's report, and this confirms the importance of 1.3805. Today, this level has double importance, with the falling trend line from 1.4577 touching the above mentioned Fibonacci level. As we said yesterday, with Friday's move taking us close to the channel bottom, and then a fast bounce reaching 1.3666, the odds of an upside correction remains present.

But we need a break of today's resistance 1.3805 before we can say the odds favor a continuation of this rebound. Short-term resistance is still at 1.3805, and breaking it would indicate that the price is already moving higher after the drop we witnessed last week, even if that was only for a short term correction. The targets for such a correction would be the important 1.3857 & 1.3936. While the support is at 1.3752, and breaking it would bring back the drop, targeting 1.3665 & 1.3582.

Support:

* 1.3752: Fibonacci 38.2% for the short term.

* 1.3665: a well known previous support/resistance area.

* 1.3582: Apr 6th high.

Resistance:

* 1.3805: Fibonacci 50% for the last drop from 1.4025, and the falling trend line from 1.4577.

* 1.3857: Fibonacci 61.8% for the last drop from 1.4025.

* 1.3936: Feb 1st high.