EURUSD: The pair remains biased to the upside in the near term on corrective recovery as it looks to extend that trend possibly towards its key resistance located at the 1.3611 level, its Nov 18’2011 high. This is coming on the back of a recovery triggered from the 1.3212 level in late Nov’2011. On a cut through the 1.3611 level, the 1.3866 level, its Nov 04’2011 high will be targeted with a breach turning attention to the 1.4241 level, its Oct 27’2011 high. Further out, the 1.4342 level, its daily falling trendline comes in as the next upside target. Its daily RSI is bullish and pointing higher suggesting further strength. Conversely, the risk to our analysis will be the pair’s failure to follow through high on its current strength which could a turn to the downside towards its Nov 30’2011 low at 1.3258 with a break below there exposing its Nov 25’2011 low at 1.3212. EUR must break and hold below here to pave the way for a move further lower towards the 1.3144 level, its Oct’2011 low. The bigger support lies at its psycho level at 1.3000. All in all, though still holding on to its medium term downside theme, the pair faces the risk of further corrective strength.
