EURUSD: Unless EUR climbs back above the 1.2442 level, there is likelihood of a return to the 1.2239 level. A break of here will set the stage for further declines towards the 1.2132 level where a violation will aim at the 1.2040 level. Below here if it materializes will target the 1.2000 level, its big psycho level. We expect EUR to face price hesitation ahead of or at this level. In such a case, it could see it back off higher but if that level is breached, the pair should weaken further towards the 1.1950 level. Conversely, a return above the 1.2407 /42 levels will have to occur to reverse its present threats and trigger further upside. Further out, resistance lies at the 1.2482 level, its .618 Fib Ret. All in all, EUR continues to hold on to its broader medium term weakness.
