EURUSD: The pair may be consolidating its rally from the 1.2620 to 1.3233 levels but continues to hold on to bullish bias with eyes on a return to the 1.3233 level. A clearance of here will see EUR strengthening further with eyes on the 1.3375 level, its Dec 12’12 level. On further price extension, the pair should target the 1.3484 level, its Dec 05’2011 high and possibly higher towards its Dec 02’2011 high at 1.3547. Alternatively, on continued consolidation, downside risk could develop towards the 1.3074 level 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 followed by the 1.2587 level, its Aug 2010 low. All in all, EUR continues to retain its corrective recovery tone set from the 1.2624 level despite its price consolidation.
