Price hesitation may have set in but vulnerability to the downside remains as long as the 1.3547/1.3611 zone continues to hold as resistance.This will create scope for an eventual return to the 1.3212 level, its Nov 25'2011 low where a violation will clear the way for further declines towards the 1.3144 level, its Oct'2011 low. EUR has been under pressure since tumbling off the 1.4241 level in late Oct'2011. Below the 1.3144 level will open the door for more weakness towards its psycho level at 1.3000 and possibly lower towards the 1.2874 level. On the upside, a turn above the 1.3547/1.3611 zone will have to occur to put its downside threats on hold and open the door for a move higher towards 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 will come in as the next upside targets. All in all, with EUR bearish and vulnerable to the downside in the medium term, risk remains lower towards the 1.3212 and the 1.3144 levels.