EUR remains well supported by the mid-term uptrend started almost 1 month ago at the key 1.2480 level. The daily charts look bullish, with RSI on the positive side and oscillators looking up. Another ceiling is formed by the trend line descending from the Jun. 2006 high at 1.2979, touching the Aug. 2006 resistance cluster (1.2890) and settling just above the current quote around 1.28. Scaling down this wider picture to the hourly studies, we find an overall positive perspective for the EUR, but with a few warning signals. 1.2820 and 1.2805 act as immediate resistance levels, followed closely by the Sep. 2006 high at 1.2830. Once the bulls manage to push through this area, the road will be clear ahead for a new test of the yearly high at 1.2979, followed by a first attempt at 1.30. Nevertheless, some retracement in short-term is probable under way (down from today's 1.2805 high towards 1.2765 - 38.2% of the recent 1.2690 - 1.2820 small wave). In case of a break here, the dollar may advance back into the lower 1.27 area on choppy price action during the next sessions. However, the picture in mid-term remains EUR positive, as strong support awaits at 1.2730 and lower just below 1.27 (also a cluster of MAs on large-timeframe charts). We will be looking to re-establish our mid-term longs in the 1.2740-1.2710 zone, with primary targets at 1.2828 and 1.2870.