FXstreet.com (Barcelona) - The Euro has gone through a sharp sell-off on Wednesday extending its decline from 1.4415 high on Tuesday to levels 300 pips lower, as the pair hit a fresh 5-month at 1.4115, testing support area at 1.4120.

Although the pair seems extreme oversold, the Euro does not give signs of correction, according to Valeria Bednarik, technical analyst at FXstreet: Extremely over sold in the hourly chart after losing almost 200 pips in the day, pair has broke under 1.4180 now first strong resistance for the pair, as it represents the 50% retracement of the monthly fall 1.60/1.23. Indicators look exhausted at this point, yet not triggering any correction movement at this time.

Support levels, according to Bednarik, lie at 1.4120, 1.4075 and 1.4040. On the upside, resistance levels are 1.4180, 1.4215 and 1.4250.