We said yesterday "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." And it seems that the Euro was eavesdropping! The price broke the support 1.3726, and dropped as expected in a correction which stopped only 3 pips before the "ideal target" 1.3635! As we can see in the chart, yesterday's low was close to 2 important support levels: the upper line in the triangle & Fibonacci 61.8%.Thus, the outlook is still positive and will be as long as we are above 1.3635. This is the "support of the day" & if broken, we expect the Euro to drop strongly, and target 1.3543 first, and may be the important 1.3480 after that. The resistance is at 1.3743 & breaking it would indicate a resumption of the uptrend that followed the break of the triangle. The next set of targets will be the important 1.3838, and may be we will see 1.3928, while the Euro approaches the 1.40 important landmark.

Support:

* 1.3635: Fibonacci 61.8% for the short term.

* 1.3543: Mar 10th low.

* 1.3480: the rising trend line from 1.3442 on the hourly chart.

Resistance:

* 1.3734: Fibonacci 61.8% for the short term.

* 1.3838: Feb 9th high.

* 1.3928: Jul 3rd low.