EURUSD is now testing the January low (1.262) on Greek exit, European bank worries

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EUR/USD is currently trading at 1.26442 and finally testing the January 13 low of 1.26244. Nice downside move after breaking support. It could bounce at the January low and test that downtrend line for a potential upside trade, but EUR/USD is still trading in a descending channel. January support is an important level to hold, in my opinion. If 1.26 breaks, 1.20 to parity is next (second chart). I'd be very bullish on the euro (EUR/USD) if it managed to break above 1.30 (ceiling resistance) and through that downtrend line from September 2011. The euro is worried about the possibility of Greece leaving the European Monetary Union (Economic and Monetary Union) and credit risk rising at European banks.