Risk of a return to the 1.2975 level could be building up after the pair reversed its previous week gains the past week. If that level is tested and broken further declines will build up towards the 1.2879 level, its Jan 23'2011 low with a breach of there turning focus to the 1.2620 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to break and hold above the 1.3483 level to reverse its present downside offensive and bring further strength towards its Dec 02'2011 high at 1.3547where a breach will target its weekly 200 ema at 1.3642. All in all, EUR remains vulnerable to the downside having lost its upside momentum the past week.
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