The Euro broke the support 1.3412 and fell as expected, but less than what is expected. The drop which followed was less than 70 pips, and did not reach the first suggested target 1.3283. But this sluggishness does not change the negative technical outlook.

And as we said yesterday, after such a break it is only normal for the Euro to enter in a bearish phase, for the short term at least. But approaching 1.3606 then breaking a rising channel could mean that we are entering a bearish phase on the medium term as well.

Short term support is at 1.3355, and if broken, the drop created upon the1.3465 break will gain momentum, and will drag the Euro down to 1.3283 as a first target for this break, and then we could see 1.3190. As for the resistance, it is at the important trend line on the hourly chart, which is at 1.3458.

If the Euro manages to go back inside the channel, that would be a real surprise, and if this surprise happens, that would give another chance to test the most important resistance of all 1.3606. And if this one is broken, the Euro will enter a bullish phase for the short & medium terms, and would target 1.3703 as a first immediate and modest target for such a break on the way to higher levels in the coming days. But, as long as we are below 1.3458, there will be no surprises, and the Euro will fall towards the above mentioned targets.

Support:
* 1.3355: Asian session low.
* 1.3283: last Thursday's low.
* 1.3190: Apr 30th 2009 low.

Resistance:
* 1.3458: the falling trend line from Friday's low on hourly chart.
* 1.3606: Fibonacci 61.8% for the drop from 1.3816.
* 1.3703: Mar 8th high.