EURUSD: While EUR may be holding on to some of its corrective gains, as long as it continues to hold below the 1.2407 level, it risks downside weakness. In such a case, support lies at the 1.2132/17 levels. A violation of here will call for a move further lower towards the 1.2040 level. Below here should target the 1.2000 level, its big psycho level. We expect EUR to face price hesitation ahead of or at this level. This could see it back off higher but if that level is breached, the pair should weaken further towards the 1.1950 level. The alternative scenario will be for the pair to return above the 1.2407 level. This will trigger its corrective recovery towards the 1.2482 level, its .618 Fib Ret and then the 1.2500 level. All in all, EUR now faces corrective recovery risks.
