The EUR/USD pair absolutely fell apart on Wednesday as the Italian 10 year bonds broke above the 7% mark for the first time since adopting the Euro. The pair was relentless in its selling, and it now finds itself sitting at the very bottom of the recent area that we have traded in. The 1.34 level looks to be vital, and any move below that would be very bearish indeed. However, a bounce could come from this area – the Euro has held up quite well over the last few months, even with the drama coming from Greece, Italy, and the other weaker nations. The rallies that we may see in this pair should be sold however, as there are far too many minefields to walk through before we get to “solving” the Euro. We sell those rallies, and a break below 1.34 as well.