Despite a one-day recovery on Monday, EUR remains vulnerable as it faces further downside weakness. On the downside, initial support lies at the 1.3078 level where a violation will call for a run at the 1.2975 level. A breach of here will set the stage for further weakness towards the 1.2930 level, its Jan 25'2011 low. Its daily RSI is bearish and pointing lower supporting this view. The alternative scenario will be for EUR to return above the 1.3484 level, its Dec 05'2011 high. This will resume its uptrend and call for a push towards its Dec 02'2011 high at 1.3547 where a breach will target its weekly 200 ema at 1.3642. All in all, EUR remains vulnerable to the downside on bear threats.