The pair has triggered a corrective recovery but as long as that happens below the 1.3212 and 1.3144 levels, risk remains lower in the medium term. This leaves the possibility of a return to the 1.2945 level on the cards with a loss of there targeting the 1.2874 level, its Jan 2011 low. Further down, support comes in at the 1.2587 level. Alternatively, EUR will have to break and hold above the 1.3212 level, its Nov 25'2011 low and the 1.3144 level to reduce its broader downside pressure and bring gains towards the 1.3419 level, its Nov 17'2011 low and then its 1.3547 level, its Dec 02'2011 high. Further out, the 1.4241 level, its Oct 27'2011 high and the 1.4342 level, its daily falling trendline come in as the next upside targets. All in all, though recovering, its medium term bias remains lower.

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