FXstreet.com (Córdoba) - The medium-term outlook for the euro remains lower, according to the Wells Fargo team. "A run of encouraging debt crisis developments may be nearing an end, while ongoing economic softness and easy European Central Bank monetary policy should continue to weigh on the euro", they explain. "FX positioning and technicals both offer scope for euro declines, and we see a weaker euro outlook over both the near and medium-term".
Technically, EUR/USD has broken below 200-day MA support at $1.2826, says Wells Fargo. "The next downside targets are prior lows at $1.2466, $1.2242, and $1.2134 (all August lows), and eventually $1.2043 (July low)".
There are layers of resistance from prior highs at $1.3140 (October), $1.3172 (September), $1.3284(May), $1.3386 (March) and $1.3487 (February), according to the analysts.