While EUR may have halted its weakness and is attempting to recover high, it continues to maintain its broader downside bias.This suggests that there is risk of a return to the 1.3212 level, its Nov 25'2011 low. A clearance of there will call for further declines towards the 1.3144 level, its Oct'2011 low. The bigger support lies at its psycho level at 1.3000. On the other hand, on continued recovery attempt, we may see the pair targeting the 1.3419 and 1.3611 levels. However, it will have to break and hold above the 1.3866 level, its Nov 04'2011 high and the 1.4241 level, its Oct 27'2011 high to end its present bear threats and bring further gains towards the 1.4342 level, its daily falling trendline. Further out, resistance resides at the 1.4550 level, representing its Aug 29'2011 high. All in all, with medium term downtrend still intact, EUR looks to weaken further despite its recovery attempt.
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