EURUSD: Having continued to hold on to its bearish momentum and weakening, the risks of further losses are likely. This will target its immediate support located at the 1.2300 level where a violation will aim at the 1.2250 level and its key support located at the 1.2149 level, its July 27’2010 low. The pair could face price hesitation on an initial test at this level but if that breaks, further declines could shape up towards the 1.2100 level. Its daily RSI is bearish and pointing lower supporting this view. On the other hand, the pair will have to break and hold above the 1.2620 level and the 1.2824 level to annul its present downside weakness and bring further upside gain towards the 1.3000 level. Further out, resistance resides at its April 14’2012 high at 1.3146. All in all, EUR remains biased to the downside medium term.
