EURUSD: The pair may have backed off higher prices and failed to follow through on the back of its last week strength but it continues to hold on to its medium term uptrend. As long as EUR continues to hold and trade above its key support at the 1.3322 level, the risk remains to the upside for a run at the 1.3484 level, its Dec 05’2011 high. A cut through here will call for a push towards its Dec 02’2011 high at 1.3547 where a breach will target its weekly 200 ema at 1.3642. On the downside, the threat to this analysis will be a return to the 1.3322 level. A reversal of roles as support is likely to occur here but if that level fails, the 1.3026 level, Feb 06’2012 low will be targeted. Further downside, support stands at the 1.2975 level where a breach will set the stage for further declines towards the 1.2930 level, its Jan 25’2011 low. All in all, the medium term trend remains higher with the risk of further strength envisaged.
