EUR continues to weaken breaking below the 1.2874/56 levels to close the week lower. This now leaves the risk of further weakness towards its Sept 2010 low at 1.2703 where a breach will pave the way for further declines towards the 1.2587 level, its Aug 2010 low. Further down, support stands at the 1.2479 level. Its daily and weekly RSI are bullish and pointing lower supporting this view. Alternatively, on any recovery, the 1.2874/56 levels eroded the past week will be targeted where a reversal of roles as resistance is expected to turn the pair back down. However, if that zone is taken out, more weakness 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 has resumed its medium term downtrend as it looks to weaken further.

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