While EUR may have halted its broader weakness and closed higher the past week, it continues to hold its medium term downside bias. This suggests that on any failed recovery, the pair should return to the 1.2286 level where a violation will call for a run at the 1.2149 level. The pair could turn higher on testing and holding at this level but if that breaks, further declines could shape up towards the 1.2100 level. On the upside, to resume its recovery it will have to break and hold above the 1.2622 level, its May 28'2012 high. This will clear the way for a run at the 1.2733 level, its Jan 18'2011 low. All in all, EUR remains biased to the downside medium term though facing recovery risks.