EURUSD: With EUR continuing to weaken on the back of its past week downside pressure, further decline is expected. It is currently seen trading below the 1.2879 level, its Jan 23’2011 low and a continued hold below here will push the pair further lower towards the 1.2733 level, its Jan 18’2012 low. On a violation of this level, the 1.2620 level, its Jan’2012 low will be targeted. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, the pair will have to break and hold above the 1.3282 level and the 1.3387 level to end its present bear threats and set the stage for further corrective recovery. This will leave the pair targeting the 1.3484 level with a cut through here pushing it further higher towards its Dec 02’2011 high at 1.3547. All in all, EUR remains biased to the downside on further weakness.
