Though vulnerable to the downside, as long as it holds above the 1.2442 level, it faces the risk of a return to the 1.2588 level. A breach will aim at the 1.2692 level followed by the 1.2748 level. The alternative scenario will be for the pair to return to the 1.2442 level. A reversal of roles as support is likely here but if that fails to occur the pair could weaken further towards the 1.2239 level. A clearance of here will set the stage for a move lower towards the 1.2132/17 levels. Further down, support stands at the 1.2040 level. All in all, EUR continues to face upside recovery threat though vulnerable.