EURUSD: With a strong sell off seeing EUR weakening and reversing its previous week gains at the end of the week, further declines should follow. This will set the stage for further weakness towards the 1.2149 level, its Jun 27’2010 low. EUR may hesitate on testing this level and could turn higher but if that level breaks, further declines could shape up towards the 1.2100 level, its psycho level. A decisive clearance of here will open up further downside risk towards the 1.2000 level. Its weekly RSI is bearish and pointing lower supporting. On the upside, the pair will have to break above the 1.2748 level to end its present weakness and turn attention to the 1.2824 level with a cut through here targeting the 1.2902 level. All in all, EUR remains biased to the downside on further weakness.
