The Euro retreated, breaking the support specified in Friday's report 1.3597, dropped as expected but settled for 1.3501, a whole 21 pips above the suggested target 1.3480. But what took place was a confirmation that reaching 1.38 has caused the Euro a lot of exhaustion. In addition to the fact that the "Reversal Day" pattern which took place on Wednesday was heavy on the pair. We can see on the attached daily chart that we are trading within a pretty harmonized channel, and it is exciting to see that the bottom of this channel is at 1.30, so are we heading there? The continuous shine of the Dollar, and the extreme strength it showed on Friday against the Pound in specific, and also against the Euro indicate that we are probably getting there As for the short term, the support is at Friday's low 1.3501, and if broken, the drop will resume, targeting the important support, which has a few bottoms just above it: 1.3422, and then 1.3341. As for the resistance it is at 1.3542, and breaking it would indicate that the price will correct the big drop, with the ideal targets for this correction are 1.3621 & 1.3696.

Support:

* 1.3501: Friday's low.

* 1.3422: May 18th low.

* 1.3341: May 8th low.

Resistance:

* 1.3542: Asian session top.

* 1.3621: Fibonacci 38.2% for the short term.

* 1.3696: Fibonacci 61.8% for the short term.