EURUSD: The pair has halted its medium term weakness and triggered a recovery breaking above its minor resistance at the 1.2816 level. However, EUR continues to hold on to its broader medium term downtrend. This suggests a recapture of the 1.2664 level, its Jan 09’2012 low could follow on ending its current recovery. A decisive violation of there will call for a move further lower towards the 1.2587 level, its Aug 2010 low. Further down, support stands at the 1.2479 level. Its daily RSI is bearish and pointing lower supporting its medium term downside bias. Alternatively, on continued recovery, the 1.2941 level, its Jan 05’2011 high will be targeted where a breather is expected to occur and then turn the pair back down. However, if that level is broken, further strength is likely towards the 1.3074 level and the 1.3197 level. Above here will aim at the 1.3212 level, its Nov 25’2011 low. All in all, EUR continues to retain its medium term downtrend though recovering.
