EURUSD: Maintains Broader Downside Though Hesitating

Outlook on EUR continues to point lower as it is weak and vulnerable to the downside. The risk is for the pair to decline further towards the 1.2149 level, its Jun 27'2010 low. EUR may turn higher on testing this level but if that level breaks, further declines could shape up towards the 1.2100 level and then the 1.2000 level, its key psycho level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the pair will have to break above the 1.2748 level to end its present weakness and turn attention to the 1.2824 level with a cut through here targeting the 1.2902 level. All in all, EUR remains biased to the downside on further weakness.