Our call for more weakness in our weekly analysis has been confirmed as evidenced by EUR's present declines pushing it below the 1.3494 level in early trading today. If EUR holds below this level on a daily closing basis at the end of today, further bearish offensive cannot be ruled out towards the 1.3245 level, its Jan 17'2011 low and then its big psycho level at 1.3000.Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the pair will have to break and hold above the 1.3859 level to reverse its current bearishness. This will set the stage for a move higher towards its Nov 08'2010 high at 1.4083 level. Further out, resistance comes in at the 1.4281 level traded in early Nov 2010.

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