EURUSD: Although EUR extended its correction on Thursday, that gain is currently being reversed on a sell off. As long as it can hold below its support turned resistance at the 1.2822 level, our outlook remains lower short term. Support lies at the 1.2660/25 levels. A breach of here will call for a run at the 1.2560 level. Its daily RSI is supportive of this view. On the upside, resistance resides at the 1.2755 level with a turn above here targeting the 1.2822 level. A reversal of roles could occur and turn the pair lower. 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 continues to face further downside threats in short term despite recovery attempts.
