While EUR may be attempting to stage a recovery, as long as it trades and holds below the 1.3387 level, our bias remains to the downside. The broader risk remains for the pair to weaken towards the 1.3003 level, its Mar 15'2012 low. On a cut through here, the 1.2975 level will be aimed at followed by the 1.2879 level, its Jan 23'2011 low. On the other hand, to annul its present downside pressure, it will have to break and hold above the 1.3387 level. This will leave the pair targeting the 1.3484 level with a cut through here pushing the pair further higher towards its Dec 02'2011 high at 1.3547. Further out, price extension if seen will aim at its weekly 200 ema at 1.3642. All in all, EUR remains biased to the downside having continued to maintain a nearer term bearish tone.
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