The Euro broke the support specified in yesterday's report 1.3188, and successfully reached the first suggested target 1.3113 with unbelievable accuracy (Yesterday's low was 1.3113 EXACTLY). Although the price bounced back above 1.32 (confirming the importance of 1.3113), but there is no change on the technical outlook , we still believe that this downtrend is capable of breaking the 1.30 landmark, and go into the 1.20s for the first time in a year.

But, after yesterday's plunge we could see a rising correction, or actually we are probably in one, which should stay inside the channel drawn on the attached chart. That is why we will focus on short term levels for today, waiting for one of them to give us the direction for the next several hours. Short term support is at the nearby 1.3190, and breaking it would indicate a drop to 1.3113 once again, then maybe we will see 1.3050. The resistance is at 1.3232, and breaking it would confirm that we are in a rising correction for yesterday's drop, with the ideal target at 1.3299, and the maximum target at the channel's top 1.3340. We see that it is very hard for the Euro to decisively break this resistance.

Support:
* 1.3190: important intraday support.
* 1.3113: Mar 30th 2009 low.
* 1.3050: Apr 20th 2009 high.

Resistance:
* 1.3232: important intraday resistance.
* 1.3299: Fibonacci 61.8% for the last drop from 1.3414.
* 1.3340: the top of the falling channel on hourly chart.