After a rally above the daily resistance of 1.6300 last month the euro pulled back to the 50% (1.6150) Fibonacci retracement level. We saw strong buying interest in that area as the price stabilised. The RSI is still in the neutral zone which suggests there is plenty of room on the upside. The immediate target would be the previous high of 1.6320 and its break could trigger an extended rally toward 1.6420. On the downside, the 61.8% (1.6100) Fibonacci level would be important in keeping the upbeat sentiment.