The Euro broke the Support specified in Friday's report 1.2608 and dropped hard, reaching both suggested targets 1.2511 & 1.2455 with complete success, and even dropping more than 200 pips below the latter. This new collapse is just another part in this downtrend that won't get tired! It has reached the lowest level in 4 years, and it seems like it is targeting the psychological level 1.20 on the short term, probably during this week. Today's support is at 1.2254, and breaking it would indicate a continuation of the drop, and of this brutality of the Dollar towards the Euro. The targets for such a break if it happens will be 1.2113 then the psychological level 1.2000. As for the resistance it is at 1.2294, and breaking it would give us a bounce, actually a strong one after this collapse, in order to create a matching correction. In case this break happens, the targets will be 1.2435 & 1.2511. But even if the Euro reaches 1.2511, that will not harm the negative outlook which dragged the Euro to these low levels.

Support:

* 1.2254: important intraday low.

* 1.2113: Apr 17th 2006 low.

* 1.2000: psychological level.

Resistance:

* 1.2294: important intraday level.

* 1.2435: the top of the falling channel on the hourly chart.

* 1.2511: May 10th low.