EURUSD: Despite its current bid tone, EUR retains its overall medium term downtrend as it looks to recapture the 1.2520 level, its 2010 low and its 2009 low at 1.2456. Though price hesitations may occur at the latter level on initial test, we expect it to give in and eventually trigger the resumption of its primary trend. This should open the door for more weakness towards its 2008 low at 1.2328 and even lower. Alternatively, we will have to see a break and close above the 1.3093 level to bring more strength towards the 1.3113 level, its April 28'10 low. This level should reverse roles and provide support thus turning the pair lower again. Its daily studies are bearish and pointing lower suggesting further weakness. All in all, EUR's bearishness remains intact as it looks to retarget the 1.2520/1.2456 levels.

width=400