• The single currency has failed to penetrate resistance at 1.3275, lending to the decline through to the test of support at 1.3200.  Although a slight correction can be anticipated at this level, any upside momentum will likely be tested at 1.3242 resistance.
• However, given the bearish sentiment now in the market for the single currency, it is probable that the Euro will lose further ground to the US dollar (without a corrective effort), till support circa the 1.3200 round figure support barrier.  The level is being reinforced by a confluence of support levels, namely the 38.2% fibonacci level from 1.3057-1.3282 bull wave and the 1.3057-1.3156 ascending trendline support.
• The strength of the level will be enough for bidders to build short term defenses, leaving the currency pair in consolidation.
• Any break through of the 1.3200 would see immediate support at 1.3171.

More on technical analysis - Euro Upside Potential Dims Ahead of Key Resistance