EUR is now struggling to maintain its recovery as bears have taken control following its failure at 1.3263 level. As long as the pair trades and holds below the 1.3387 level, our bias remains lower. In such a case, the 1.3003/1.2975 levels will be targeted. This if taken out could see the pair weakening further towards the 1.2879 level, its Jan 23'2011 low. On the other hand, to annul its downside pressure, the pair will have to break and hold above the 1.3387 level. This will leave the pair targeting the 1.3484 level with a cut through here pushing the pair further higher towards its Dec 02'2011 high at 1.3547. Further out, price extension if seen will aim at its weekly 200 ema at 1.3642. All in all, EUR remains biased to the downside short term.

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