The single currency rebounded strongly from 1.2537 to 1.2678 on short-squeezing together with cross buying in euro especially versus the Japanese yen and the sterling, suggesting recent decline from 1.2992 has formed a temporary low there and further choppy trading above this month's 1.2513 low would continue and breach of 1.2737 would bring stronger retracement of aforesaid fall, however, resistance at 1.2811 should remain intact.  
On the downside, a break of 1.2513 this time would confirm medium-term downtrend has resumed and yield further weakness to 1.2457, however, major low at 1.2329 is expected to hold on first testing.