The EUR/USD has really deteriorated since Friday after falling below previous April lows. The EUR/USD fell into a rapid decline from here, and is presently trading back below the highly psychological 1.30 level.

Though 1.30 has been broken, we wouldn't be surprised to see some support around this area as investors take advantage of oversold conditions and hesitate leaving
1.30 behind. Serious damage has been inflicted upon the Euro in reaction to dissent among the ECB.

The ECB continues to send mixed messages regarding its future monetary policy and the uncertainty is killing the EUR/USD. Investors need a unified central back in the face of the global economic crisis. Discontent among the ECB raises debate concerning whether a benchmark rate below 1% is in the not so distant future.

Though the EU has shown signs of improvement in economic data, economists agree the global economy remains in a fragile state. If a second wave of crisis should hit, the EU could find itself exposed again to faltering Eastern European economies.

Adding to the downward pressure in the EUR/USD is another positive earnings report from a major U. S. financial, Bank of America. The weakness in the EU economy relative to the present strength in America's is appreciating the Dollar across the board. On a more speculative front, we should consider what the EUR/USD's freefall implies about U. S. equities.

Since the two have been positive correlating through the economic crisis, does the EUR/USD's plunge indicate an approaching selloff in the S&P futures? On an encouraging note for the EUR/USD, the currency pair has a ton of solid support to rely upon after building up a solid base from February through March.

Therefore, although the near-term fundamentals are negative, the EUR/USD has some considerable assistance to the downside to keep the overall uptrend intact. We adjusted our 1st tier uptrend line to give investors a picture of where the force of the uptrend comes into play next.

Fundamentally, we find supports of 1.2953, 1.2919, 1.2876, 1.2833, and 1.2800. To the topside, we see resistances of 1.3017, 1.3050, 1.3091, 1.3126, and 1.3162. The 1.30 area still serves as a psychological cushion but could turn into a barrier shortly. The EUR/USD is currently exchanging at 1.2967.

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