FXstreet.com (Barcelona) - The Euro opened the week with a weak pace, breaking below 1.2655 support level and moving between 1.2570 and 1.2660 during most of Monday's Asian and European sessions weighed by the EU rafusal to bailout Eastern European ailing banks.

Despite several attempts to break lower, the Euro has managed to hold above 1.2570 so far although the pair is on a bearish configuration off Feb 23 high at 1.2992. next resistance level remains at 1.2515/25 area, and once below there, the Euro could fall towards Nov 20 low at 1.2525.

According to the Varengold Bank Research Team, the Euro is likely to explore lower territories this week: EUR still managed to close lower at 1.2677 the past week. With that development, a retarget of the 1.2514 level, its swing low established on Feb 18'09 now looks to provide support with a break and hold below there turning focus to the 1.2330 level, representing its late Oct'08 low. As highlighted in our previous analysis, this level presently represents the bottom of a broader short term range and an eventual invalidation of there will open the door for a run at lower prices at the 1.1860 level, its Mar'06 low and then its Dec'05 low at 1.1640.

On the upside, Varengold Bank Research Team forecasts: However,on a failure to retest and take out the 1.2514 level, sideways trading with upside bias may be seen targeting its Jan 23'09/Feb 02'09 lows at 1.2706/66 ahead of the 1.2992 level, its Feb 23'09 high. Beyond there should leave the pair aiming at its Feb 04'09/Nov 25'08 highs at 1.3071/81 en route to the 1.3298/1.3313 zone, its Jan 06'09 low/Oct 30'08 high.