Euro's intra-day selloff below 1.2706 signals downside break of the range of 1.2706-1.3095 has taken place and recent decline from December '08 high at 1.4720 should extend towards daily chart support at 1.2549, however, oversold condition has increased risk of a corrective rebound later.  
Above 1.2720/27 (previous support) would indicate temporary low has been formed instead and risk retracement to 1.2800/10.