Having violated the 1.3144/1.3212 levels, EUR remains vulnerable to the downside with eyes on further weakness. This leaves the broader risk to the downside targeting its long term support at the 1.2874 level. This is coming on the back of the pair's continued weakness started from the 1.4938 level. Below the 1.2874 level will call for further weakness towards the 1.2587 level, ist Aug 24'2010 low. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, EUR will have to break and hold above the 1.3212 level, its Nov 25'2011 low and the 1.3144 level to halt its bearishness and then target further recovery. This if seen will set the stage for further strength towards the 1.3547 level with a breach of here targeting its daily 200 ema currently standing at 1.3863. Further out, the 1.4241 level, its Oct 27'2011 high and the 1.4342 level, its daily falling trendline. All in all, with EUR bearish in the medium term, risk remains lower towards the 1.2874 level and beyond.

Weekly