The Euro broke the support specified in yesterday's report 1.3501, only to stop in the middle of the way to the target 1.3422, at 1.3462 in specific. This is the fifth time that the EURUSD reaches a daily low in the same area, without being able to break it. In Addition to yesterday's low, the Euro has bottomed in the neighborhood on: Feb 19th (low 1.3442), Feb 25th (low 1.3450), Mar 1st (low 1.3459) & Mar 2nd (low 1.3434). And after 3 weeks, we come back to the same area, as if we needed another bottom here to realize just how important this support area is.

But, we were expecting to see a break of the wide and strong support area which concerned us for more than a month so far: 1.3434-1.3462. It is with no doubt that any attempts to reach 1.30 on the medium term will not have a good chance unless this support is broken. Short term analysis provides that the support is at 1.3502, and breaking it would give another chance to break the 1.34 areas. The targets for this break will be 1.3442 first, and then 1.3341. As for the resistance it is at 1.3566, and breaking it would mean we are already correcting the last drop from the 1.38 top, and the targets for this correction will be 1.3621 & 1.3696.

Support:

* 1.3502: Fibonacci 61.8% for the short term.

* 1.3422: May 18th low.

* 1.3341: May 8th low.

Resistance:

* 1.3566: Fibonacci 61.8% for the micro term.

* 1.3621: Fibonacci 38.2% for the short term.

* 1.3696: Fibonacci 61.8% for the short term.