EUR/USD is testing 1.2317 (10/08/2012 intraday high) below which will weaken the short-term structure in favour of the bears.
Focusing on the USD Index, we continue to expect that the key low at 81.161 (18/06/2012 low) will not be breached and view this level as being key to continued upside.
Back over 1.2443 will dampen our bearish bias.