Having wiped out its previous week gains and closed below its key supports at the 1.3835 level, its Sept 09'2011 low and the 1.3623 levels, its July 12'2011 low to end week lower, EUR is entering the new week on a bearish note. This suggests a follow through lower is likely to occur towards the 1.3427 level, its Feb'2011 low where violation will see the pair weakening further towards the 1.3382 level, its Sept 22'2011 low. Price hesitation may occur here and turn the pair back up but if that fails to materialize, its psycho level seen at the 1.3300 level will be targeted ahead of the 1.3245 level, its Jan 17'2011 low. Its weekly RSI is bearish and pointing lower suggesting further weakness. Alternatively, the 1.3799 level, its Sept'2011 high comes in as the next upside target with a breach of there setting the stage for more gains towards the 1.3835 level and next the 1.3936 level, its Sept 09'2011 high. All in all, EUR continues to maintain its medium term bearishness as it looks to weaken further in the coming week.

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