(Please click on the accompanying chart to enlarge.)
As noted last Thursday on this blog, EUR/USD (a daily chart of which is shown) was on a prolonged bearish run that continued to look bearish going into the weekend (click here for that blog post). The targeted support at that time was the 1.3550 region. As it turns out (as of early Monday morning), price plunged sharply, reaching and slightly overshooting that support level by around 8 pips before retreating back up again. A subsequent strong breakdown of this key support could eventually target further strong support around the 1.3350 region.
UPDATE: As of Monday mid-morning (New York session), price has broken down decisively below the 1.3550 support region. The next support target to the downside, as mentioned above, resides around the 1.3350 region.
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