The Euro rose breaking the resistance 1.3734, jumping 60 pips above it, coming very close to 1.38, but without reaching the first suggested target 1.3838. This expected rise came as a result of breaking the triangle to the upside, and the positive technical outlook which followed this break, and we have talked about it on Friday. To maintain this positive outlook, the Euro should hold above the most important support for the short term 1.3635. But of course, a correction won’t harm the outlook, as long as it holds above this support.

The closest short term support is 1.3726, and breaking it would indicate a normal correction after the last rise, with the ideal target at 1.3635, the most important support for the time being. Only if this level is broken that we expect further downside activity targeting 1.3543. As for the resistance it is at 1.3768, and breaking it would indicate a continuation of the rise that followed the triangle break. The targets for such a break would be the important 1.3838, and after that we might see 1.3928, as the Euro tries to approach the important 1.40 landmark.

Support:

• 1.3726: important intraday support.

• 1.3635: the retest level for the broken trend line with in the triangle formation.

• 1.3543: Mar 10th low.

Resistance:

• 1.3768: Fibonacci 61.8% for the short term.

• 1.3838: Feb 9th high.

• 1.3928: Jul 3rd low.