We maintain our broader downside bias on EUR as it remains weak and looks to extend further declines. Having continued to hold below the 1.2286 level and the 1.2407 level, the 1.2200 level is now exposed. A breach will set the stage for a run at the 1.2149 level, its Jun 27'2010 low. EUR may turn higher on testing this level but if that level breaks, further declines could shape up towards the 1.2100 level. Its daily RSI is bearish and pointing lower supporting view. On the upside, the pair must break back above the 1.2286/1.2407 levels to annul its current weakness. This if seen will pave the way for a move further higher towards the 1.2748 level followed by the 1.2824 level. Further out, a cut through here will target the 1.2902 level. All in all, EUR remains biased to the downside.
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