EURUSD: With EUR selling off and reversing its Thursday gains, the risk is for the pair to decline further towards the 1.3033/03 levels. We may see price hesitation at this level but if taken out, further declines should target the 1.2975 level where a violation will call for a run at the 1.2879 level, its Jan 23’2011 low. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, to annul its present downside pressure, EUR will have to break and hold above the 1.3210 level and the 1.3387 level. This if see 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. Further out, price extension if seen will aim at its weekly 200 ema at 1.3642. All in all, EUR remains biased to the downside having continued to maintain a nearer term bearish tone.
