The Euro’s rally halted just above 1.38, and fell back fast & strong. As we can see from the attached chart, the Euro fell towards a very important support which is the lower trend line in the triangle that we talked about in the past few days. And as we can see on the chart as well, the price has already touched this line as well.

Holding above, or breaking this line is the single thing that will determine the direction of the day. Thus 1.3665 is the most important support, if the Euro continues its fall and breaks it, huge implication for the short & medium term will arise! The most important of which is that the chances to drop to a new bottom in this cycle, below the 9-month low 1.3434 will be huge. As for the short term, if 1.3665 is broken, we will see the price fall to 1.3550, and may be towards 1.3442 as well. But if the price holds above 1.3665, it will rise to challenge the resistance 1.3710. And if this level is broken, we expect a strong jump towards yesterday’s high 1.3816, and then it will try to reach 1.39.

Support:

• 1.3665: the rising trend line from 1.3434, and the lower line in the triangle formation.

• 1.3550: March 4th low.

• 1.3442: Feb 19th low.

Resistance:

• 1.3710: the falling trend line from yesterday’s high on intraday charts.

• 1.3816: yesterday’s high.

• 1.3901: Feb 4th high.