The EUR/USD continued its downward momentum yesterday, dropping below our previous 1st tier uptrend line.

To assume the uptrend has been comprised would be an overreaction at this point. However, if the EUR/USD were to fall beneath 3/19 lows, we could see a large near-term drop before the currency pair finds new stability.

The EUR/USD is fighting to keep its head above our medium-term downtrend line and is failing thus far, supporting the belief that we could see more near-term losses.

Technicals aside, it's intriguing the Euro depreciated against the Dollar yesterday considering most EU data came in slightly ahead of analyst expectations.

Are we merely witnessing profit-taking from the EUR/USD's amazing run, or the beginning of something more? Considering last week's move was monumental and should have reflections for weeks to come, we're sticking with the uptrend despite any losses we witness today.

The EU has managed to avoid quantitative easing while keeping its benchmark interest rate at a respectable level, giving the Euro relative strength compared to the Dollar.

Germany will release its Ifo Business Climate number today and analysts are expecting a slight decrease from the previous release to 82.2.

Fundamentally, we find supports of 1.3427, 1.3371, 1.3317, and 1.3253. To the topside, we find resistances of 1.3494, 1.3554, 1.3624, 1.3688, and 1.3724.

The EUR/USD has dropped below the 1.35 cushion, another indicator for more near-term losses.. The EUR/USD is currently exchanging at 1.3464.

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