The Euro broke the support specified in yesterday's report 1.3390 , and dropped reaching the first suggested target 1.3326 successfully, before dipping below 1.33 for the first time since May 7th of last year. This collapse is completely expected, not only that, but we believe what we have seen yet is just part one of a strong and massive medium term drop which has already started! We will not be a bit surprised when we see the Euro below 1.30 in the near future, on the contrary, we look forward with eager to that. As for the short term, we may see a correction that retests the support area 1.3434-1.3462 before the weekend, and we may not!

This depends on breaking the short term support or resistance. We see resistance at 1.3459, and the EURUSD will stay harmed, trading under a very negative technical outlook as long as we are below this resistance. But if a surprise takes us above this level, we will correct the last wave down from 1.38. Ideal targets for such a correction are 1.3550 & 1.3612. As for the support it is at 1.3303 and breaking it would indicate a continuation of the drop. We do expect large targets to be met before the weekend, such as 1.3190 & 1.3088.

Support:
* 1.3303: important intraday support.
* 1.3190: Apr 30th low.
* 1.3088: Apr 10th low.

Resistance:
* 1.3459: Fibonacci 61.8% for the short term.
* 1.3550: Fibonacci 50% for the drop from 1.3816.
* 1.3612: Fibonacci 61.8% for the drop from 1.3816.