The Euro broke yesterday's support 1.3437, and dropped approaching the suggested target 1.3340 and reaching a new bottom at 1.3357. What happened did not move our focus away from the descending channel we presented yesterday. And although there are a few pips outside the channel on both sides, this channel looks solid, and it deserves our attention. As we can see on the attached chart (the hourly chart), there is a descending channel with two bottoms on its lower trend line. This channel is the guardian of the falling trend, and its top at 1.3427 provides the most important resistance. If the price stays under this level, and continued to trade within the channel, more ownside activity is to be expected. But, if we break this resistance, the price will contradict our hypothesis of a downtrend, and will start to rise and target 1.3546 & the important 1.3675.

As for the support it is just above yesterday's low, at 1.3369 to be specific, and if broken we see 1.3113 as a first and modest target for such a break, on the way lower.

Support:
* 1.3369: important intraday support.
* 1.3266: Mar 25th & 25th low, and the last 9 months low as well.
* 1.3113: Mar 30th 2009 low.

Resistance:
* 1.3427: the top of the falling channel on the hourly chart.
* 1.3546: short term 50% Fibonacci.
* 1.3675: the horizontal resistance which stopped the price twice and caused the current drop.