Breaking the channel, and drifting away from 1.3606
The signs of drifting away from 1.3606 started to appear clearly as we broke the rising channel on the hourly chart, which appears on today's attached chart. This break took place at 1.3465, and 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 1.3412, and if broken, the drop created upon the 1.3465 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 retest level for the broken channel, which is at 1.3480. 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 1.3480, there will be no surprises, and the Euro will fall towards the above mentioned targets.

Support:

* 1.3412: Asian session low.

* 1.3283: last Thursday's low.

* 1.3190: Apr 30th 2009 low.

Resistance:

* 1.3480: the retest level for the broken channel on the hourly chart.

* 1.3606: Fibonacci 61.8% for the drop from 1.3816.

* 1.3703: Mar 8th high.