Although the pair is attempting a recovery higher, price hesitation has set in after losing upside momentum at 1.2816 level during tuesday trading session.This suggests the resumption of its broader medium term downtrend could be building up. In such a case, the 1.2664 level, its Jan 09'2012 low will be targeted where a decisive violation will call for a move further lower towards the 1.2587 level, its Aug 2010 low. Further down, support stands at the 1.2479 level. Its daily RSI is bearish and pointing lower supporting its medium term downside bias. Alternatively, on continued recovery, the 1.2874/56 levels will be targeted where a reversal of roles as resistance is expected to occur and then turn the pair back down. However, if that zone is broken, more strength is likely towards the 1.3074 level and the 1.3197 level. Above here will aim at the 1.3212 level, its Nov 25'2011 low. All in all, EUR continues to retain its medium term downtrend despite its attempts ar recovering.

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