EURUSD: Bulls may have come in at the 1.2954 level and pushed EUR higher in today’s trading session but the pair continues to hold on to its broader medium term downside. This suggests its present attempt on the upside is corrective and should eventually fade thereby turning the risk lower again. This if seen will open the door for a run at the 1.2954/93 levels where a violation will trigger further declines towards the 1.2879 level, its Jan 23’2011 low and then the 1.2587 level. On the other hand, on continued upside recovery, the pair will aim at the 1.3177 level where a violation will turn focus to the 1.3282 level and then the 1.3387 level. The latter will have to give way to allow the pair to extend further towards the 1.3484 level with a cut through here pushing it further higher towards its Dec 02’2011 high at 1.3547. All in all, EUR remains biased to the downside medium term despite attempts at recovery.
