EURUSD: Continues To Hesitate, Vulnerable To The Downside Medium Term

As long as EUR holds below the 1.2620/68 levels, the risk remains lower towards the 1.2408 level, its Jun 05'2012 low. A cut through here will pave the way for a move lower towards the 1.2286 level. Further down, support lies at the 1.2149 level. The pair could turn higher on testing this level but if that breaks, further declines could shape up towards the 1.2100 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to return to the 1.2620 and the 1.2622 level, its May 28'2012 high to reverse its present weakness. A decisive clearance of here will call for a move higher towards the 1.2733 level, its Jan 18'2011 low and then the 1.2824 level. All in all, EUR remains biased to the downside medium term though facing price hesitation.