FXstreet (Barcelona) - The EUR/USD dropped sharply after failing to break the 1.30 resistance. The European Central Bank President Jean-Claude Trichet said the eurozone's financial system is facing challenging times as financial markets and the economy are spiraling downwards.

The EUR/USD downtrend is still intact. As Hans Nilsson, analyst at CMS Forex said, We expect a new test of the important 1.24-1.25 area support. If the support is broken, the pair will plunge. If the support holds, it will indicate an important bottom.