EURUSD: While EUR may be retaining some its recovery gains off the 1.2993 level, it is now seen selling off after running into bears around the 1.3282 region. This development could see the pair extending further weakness in the days ahead possibly towards the 1.2993 level. A cut through here will open the door for a move further lower towards the 1.2879 level, its Jan 23’2011 low and then the 1.2800 level. Its daily RSI is bearish and pointing lower suggesting further declines. The alternative scenario will be for EUR to break and hold above the 1.3267 level. This if seen will expose its key resistance standing at the 1.3387 level where a violation will end its broader weakness and turn attention to the 1.3484 level. A push through here will drive the pair further higher towards its Dec 02’2011 high at 1.3547. Further out, price extension if seen will aim at its weekly 200 ema at 1.3642. All in all, EUR remains vulnerable.
