While the pair may be holding on to some of its recovery gains, its inability to strengthen further leading to a price sell-off today suggests further declines is likely in the days ahead. With a reversal of its past week losses seen during Monday trading session, there is scope for price extension towards the 1.3721 level, its weekly 200 ema. A clearance of here will set the stage for further weakness towards the 1.3650 level, its Oct 18'2011 low and then the 13524 level, its Oct 07'2011 low. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, EUR must break and hold above its Oct 27'2011 high at 1.4241 level to end its present bear threats and bring further strength towards the 1.4283 level, its Sept 06'2011 high. A violation of here will pave the way for further strength towards the 1.4342 level, its daily falling trendline and subsequently the 1.4550 level, representing its Aug 29'2011 high. All in all, with EUR turning sharply lower on price failure, risk of further bear threats remain towards the 1.3721 level.

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