EURUSD: Extends Weakness, Aims At Key Support.

EURUSD: With EUR weakening for a second week in a row, further declines is likely in the new week.  However, it will have to break and hold below the 1.2824 level to convince the market of further declines. Further down, support lies at the 1.2692/1.2748 levels where a reversal of roles could occur. This could see the pair turn higher but if this fails to happen further declines will aim at the 1.2442 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 1.3018 level where a break will aim at the 1.3171 level, its Sept 17’2012 high. A turn above here will call for a move higher towards its weekly ema at 1.3415 level. All in all, EUR looks to recapture the 1.2824 level on further weakness.

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