Having continued to maintain its recovery strength, EUR looks to build up on further gains in the new week. As long as it holds and trades above the 1.2442 level, the risk is for it to recapture the 1.2634/72 levels. A breach will aim at the 1.2748 level where a breather may occur and turn the pair back lower. However, if this fails to occur, expect the pair to strengthen further towards the 1.2824 level. Its weekly RSI is bullish and pointing higher supporting this view. The alternative scenario will be for the pair to return to the 1.2442 level. A reversal of roles as support is likely here but if that fails to occur the pair could weaken further towards the 1.2239 level. A clearance of here will set the stage for a move lower towards the 1.2132/17 levels. Further down, support stands at the 1.2040 level. All in all, EUR continues to face upside recovery threats.
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