EURUSD: The pair closed higher for a second week in a row since halting its recent declines. However, it will have to set a foothold above the 1.3288 level to convince the market of further recovery. If this is confirmed, further upside offensive could develop towards the 1.3483 level. A breach will pave the way for move further higher towards its Dec 02’2011 high at 1.3547 where a violation will target its weekly 200 ema at 1.3642. Conversely, the risk to this analysis will be a return to the 1.3003 level traded the past week followed by the 1.2975 level. An eventual break if seen will push the pair further lower towards the 1.2879 level, its Jan 23’2011 low . Further down, support lies at the 1.2620 level. All in all, EUR remains vulnerable to the downside though halting its weakness.
