EURUSD: Having decisively violated the 1.3690 level, risk of further run to the upside is now building up. The 1.3937 level, its Sept 15’2011 high will come in as the next upside target with a violation of there allowing for a further push higher towards its big psycho level at 1.4000.Price hesitation should occur here on an initial test. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to this analysis will be for the pair to return below the 1.3144 level annulling its corrective attempt and then targeting the 1.3000 level, its big psycho level. Price hesitation ahead of or at this level could occur and turn the pair back up but if taken out, further weakness should shape up towards the 1.2875. All in all, with EUR maintaining its recovery tone, risk of further upside gain is likely.
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