EURUSD: While the pair may be biased to the upside short term, it continues to face downside threats on corrective pullback. It is now targeting the 1.2824 level. This level is key as a break of here could push EUR deeper towards the 1.2755 level. We expect a cap to occur here and possibly turn the pair higher again. If broken, expect further declines to develop towards the 1.2625 level. Its daily RSI is supportive of this view. Alternatively, the pair will have to return above the 1.3047 and the 1.3171 levels to resume its short term uptrend. If this occurs, the 1.3282 level will be targeted where a violation will call for a move further higher towards its weekly ema at 1.3415 level. All in all, EUR faces further downside threats on correction.
