A further move to the downside will most likely see EUR/USD head toward the psychologically important 1.2000 handle, a level defended by the 38.2 Fib of the 1.2588-1.1639 USD rally. However in case single currency traders manage to push the pair above 1.2192, a level created by the 200-day SMA will most likely see the pair extend its gains toward 1.2262, a level marked by the key 61.8 Fib of the of the 1.2588-1.1639 USD rally. Indicators are favoring euro longs with both positive momentum indicator and MACD treading above the zero line, while overbought Stochastic gives the greenback longs a chance to retaliate.