FXstreet.com (Barcelona) - The Euro reversed on Friday all the gains posted in Thursday's rally, dropping as low as 1.2565 support level, selling pressure could increase in case European data disappoints.

According to Flemming J. Nielsen, analyst at Danske Bank, the Euro could drop to levels around 1.2400 in the medium term: EUR/USD. In general, however, we still see the fun-damental impulses supporting the USD and weighing on the euro and target EUR/USD at 1.24 in three months. That said, risk sentiment remains key and a potential recovery in equity markets could see the pair spike temporarily higher.