EURUSD: We continue to maintain our upside bias on EUR as it looks to strengthen further nearer term. It closed higher the past after testing a high of 1.3322 level. A recapture of that level will call for a run at the 1.3375 level, its Dec 12’12 level. On further price extension, EUR should target the 1.3484 level, its Dec 05’2011 high and possibly higher towards its Dec 02’2011 high at 1.3547. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullback, the 1.3025/26 levels will be targeted where a reversal of roles as support is likely to occur and turn the pair back up. However, if that level is taken out, further declines is expected towards the 1.2856/75 level, its Dec 29’2011 low/Jan 2011 low. Further down, support lies at the 1.2624 level where a loss will resume its medium term weakness and aim at the 1.2587 level, its Aug 2010 low. All in all, EUR continues to retain its corrective recovery tone despite a hitch the past week.
