Although our bias on EUR continues to point higher, price hesitation is now seen as the candles are becoming shorter and price movements are slower. Another evidence is overbought condition now seen. However, if the pair decisively breaks and holds above the 1.3785 level, its Nov 22'2010, we should see price extension towards the 1.3970 level, its Nov 09'2010 high. Its daily RSI is supportive of this view though bullish and oversold. On the downside, support lies at the 1.3571 level, its Jan 25'11 low followed by the 1.3494 level where a reversal of roles is expected if tested. Below that level if seen will call for further declines towards its Jan 17'2011 low at 1.3245 and possibly lower towards the 1.3000 level and next its 2011 low at 1.2874.

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