EURUSD: Having taken out its key resistance at the 1.3322 level and resumed its medium term uptrend, further bullish offensive is expected towards the 1.3484 level, its Dec 05’2011 high. A cut through here will call for a run at its Dec 02’2011 high at 1.3547where a breach will target its weekly 200 ema at 1.3642. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, the threat is for EUR to return to the 1.3322 level just eroded. A reversal of roles as support is likely to occur here but if that fails, the 1.3026 level, Feb 06’2012 low. Further downside, support stands at the 1.2975 level where a breach will set the stage for further declines towards the 1.2930 level, its Jan 25’2011 low. All in all, the medium term trend remains higher with the risk of further strength.
