EURUSD: Extends Weakness, Pressure Builds On .50 Fib Ret.
EURUSD: Our outlook on EUR remains to the downside as it continues to weaken. As long as it holds below the 1.2822 level this view remains valid. This development leaves the immediate support 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 1.2625/06 levels. Its daily RSI is supportive of this view. On the upside, resistance resides at the 1.2822 level where a reversal of roles could occur. However, if this fails, further upside should build up towards the 1.3000 level followed by the 1.3171 level. A breach of here will resume EUR's broader uptrend towards the 1.3282 level with a cut through here calling for a move further higher towards its weekly ema at 1.3415 level. All in all, EUR faces further downside threats nearer term.