The Euro broke the support specified in yesterday's report 1.3502, and dropped a little, then it bounced back to stop accurately at the resistance specified in the report 1.3566 (the highest price after issuance the report is 1.3561). After that, the dropped & went back to confirm the 1.3502 break, and successfully reached the first suggested target 1.3422, reaching 1.3405 until the moment of preparing this report.

With this move, the Euro finally penetrated the important support area which contains 5 daily lows, which we talked about in details yesterday. Also, with this move, the technical outlook for the medium term has "officially" turned negative, and we do expect the Euro to sink below 1.30 in the near future. As for the short term, the resistance is 1.3446 & the support is 1.3390. If we break the support at 1.3390, the price will confirm the break which has already took place for the wide support area 1.3434-1.3462, the price will start falling targeting 1.3326 and may be 1.3256. But if the resistance 1.3446 is broken, the price will take off, looking for Fibonacci resistance levels which will form today's targets 1.3501 first, and if broken 1.3611.

Support:
* 1.3390: Apr 13th high.
* 1.3326: Jan 28th high.
* 1.3256: Mar 27th 2009 high.

Resistance:
* 1.3446: the falling trend line from 1.3561 on the intraday charts.
* 1.3501: Fibonacci 61.8% for the short term.
* 1.3611: Fibonacci 50% for the drop from 1.3816.