With EUR holding on to its bearish momentum, our bias remains for it to weaken further towards its major support at the 1.2587 level, its Aug 2010 low. We may see a breather here triggering a correction on an initial test but if that level is breached, expect the pair to weaken further towards the 1.2479 level. Further down, support comes in at the 1.2400 level, its psycho level, its daily and weekly RSI is bullish and pointing lower supporting this view. Alternatively, on any recovery, the 1.2874/56 levels will be targeted where a reversal of roles as resistance is expected to occur and turn the pair back down. However, if that zone is taken out, more strength is likely towards the 1.3074 level and then the 1.3197 level. Above here if seen will aim at the 1.3212 level, its Nov 25'2011 low. All in all, EUR remains biased to the downside in the medium term downtrend as it looks to weaken further.

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