EURUSD: Retains Its Medium Term Downside, Extends Downside Momentum

By Roger Baettig | May 21 2012 3:40 AM

The broader risk continues to point lower despite its Friday recovery. With that said, we see risk targeting the 1.2640/20 levels. Further down, support stands at the 1.2587 level. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, a follow through higher on the back of its Friday recovery could see the pair targeting the 1.2902 level where a violation will set the stage for a run at the 1.3000 level, its psycho level. Other resistance levels are located at the 1.3282 level and the 1.3387 level. All in all, EUR remains biased to the downside medium term. All in all, EUR remains biased to the downside though attempting a recovery. Weekly