EURUSD: EUR triggered a correction and closed higher the past week, wiping out its previous week losses. While it is now biased to the upside into the new week it will have to overcome the 1.2322 level convincingly to open the door for more recovery towards the 1.2407 level. We expect the pair to find a respite with a reversal of roles as resistance expected here. If this happens, expect EUR to turn back lower towards its July’2012 low at 1.2040 where a breach will set the stage for a move further lower towards the 1.2100 level and then the 1.2000 level, its key psycho level. However, if the pair pushes through the 1.2407 level, it could target the 1.2672 level and possibly higher towards the 1.2748. All in all, EUR remains broadly biased to the downside though under corrective recovery.
