EURUSD: Having broken below the 1.2824 level, further decline is likely in the new week. Support lies at the 1.2700 level. We expect a cap to occur here and possibly turn the pair higher again. But if broken, expect further declines to build up towards the 1.2625 level followed by the 1.2498 level. Its weekly RSI is supportive of this view as it is bearish and pointing lower. On the upside, resistance resides at the 1.2822 level , its support turned resistance. However, if this fails, further upside should build up towards the 1.3000 followed by the 1.3171 level. A breach of here will resume its broader uptrend towards the 1.3282 level. All in all, EUR faces further downside threats.
