EURUSD: The pair looks to strengthen further after rallying strongly and reversing its one-day losses on Monday. This development now leaves EUR targeting the 1.3074 level, its Jan 03’2012 high with a cut through there allowing the pair to push further higher towards the 1.3197 level, its Dec 21’2011 high. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, if its present recovery fails, the risk will be for EUR to restart its broader medium term downtrend by breaking the 1.2624 level. This will set the stage for further declines towards the 1.2587 level, its Aug 2010 low. Further down, support stands at the 1.2479 level. All in all, EUR continues to retain its corrective recovery tone as it looks to strengthen further.
