The EURUSD continued to maintain its bearish momentum the past few months. After topping at 1.3710 levels. Last month it topped at 1.3242, bottomed at 1.2795 and closed at 1.2997 levels.
Now the pressure will be on the key support 1.2795. The EURUSD will have to hold below the 1.2795 levels on a monthly closing basis to push the market for further downside losses. If seen, It will target the 1.2042 levels where a breach will turn the focus on the 1.1640 levels.
On the upside. A failure to hold below 1.2795 could mean a return to the 1.3242 levels where strong rejection is suggested. But If 1.3242 fails on a monthly closing basis. Expect the market to strengthen towards the 1.3710 levels.
However, with the key resistance 1.3710 intact, the EURUSD is likely to return to its downside bias with risk towards 12000 levels.
Note that the euro is still suffering from the effects of the 2008 global financial crisis. The recovery is likely to begin during 2014, till then, the EURUSD is bearish and 1 more visit is left to the 1.2000 levels.