The pair has capped its recovery attempt at the 1.3849 level and tumbled lower suggesting further weakness is building up. On continued weakness, EUR will aim at the 1.3604 level, its Nov 01'2011 low where a break will resume its weakness started from the 1.4241 level. Further down, supports are seen at its Oct 10'2011 low at 1.3377 and then the 1.3144 level, its Oct'2011 low. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the pair will have to break and hold above the 1.4241 level, its Oct 27'2011 high to end its present bear threats and bring further gains towards the 1.4342 level, its daily falling trendline and then the 1.4550 level, representing its Aug 29'2011 high. All in all, with EUR bearish and targeting further downside, risk remains towards the 1.3604 level.

Daily