By | February 14 2010 9:54 AM

EUR/USD's recovery was limited by 1.3838 last week and recent decline extended further to as low as 1.3531 so far. Initial bias remains on the downside this week and further fall is expected towards 61.8% retracement of 1.2329 to 1.5143 at 1.3404 first. Break will target 161.8% projection of 1.5143 to 1.4217 from 1.4578 at 1.3076 next. On the upside, above 1.3695 will turn intraday bias neutral first. But short term outlook will remain bearish as long as 1.3838 resistance holds. However, break of 1.3838 will argue that a short term bottom is formed and bring stronger rebound.