EURUSD: With continued sell off breaking the 1.2874/56 levels during Thursday trading session, further bearish momentum is expected in the days ahead. This will leave the risk of further weakness towards its Sept 2010 low at 1.2703 where a breach will set the stage for further declines towards the 1.2587 level, its Aug 2010 low. Further down, support stands at the 1.2479 level. Its daily and weekly RSI are bullish and pointing lower supporting this view. Alternatively, on any recovery, the 1.2874/56 levels will be targeted where a reversal of roles as resistance is expected to turn the pair back down. However, if that zone is broken, further recovery higher is likely towards the 1.3074 level and the 1.3197 level. Above here if seen will aim at the 1.3212 level, its Nov 25’2011 low followed by the 1.3419 level, its Nov 17’2011 low and then its 1.3547 level, its Dec 02’2011 high. All in all, EUR continues has resumed its medium term downtrend with eyes on further declines.
