As EUR failed to follow through higher on the back of its previous week gains at the end of the week, further downside pressure is expected in the new week. This will leave the pair aiming at its key support at the 1.3212 level, its Nov 25'2011 low with a cut through here targeting the 1.3144 level, its Oct'2011 low. The pair 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 the 1.2874 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, a turn above its Oct 10'2011 low at 1.3377 and the 1.4241 level, its Oct 27'2011 high is required to reduce its downside pressure and set the stage for further upside towards the 1.4342 level, its daily falling trendline. Further out, resistance stands at the 1.4550 level, representing its Aug 29'2011 high. All in all, with EUR bearish and targeting further downside, risk remains lower towards the 1.3144 level.

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