Further gains are expected after EUR rallied strongly higher through the 1.3859 level on Thursday. In such a case, resistance stands at its Nov 08'2010 high at 1.4083 with a turn above there targeting the 1.4281 level traded in early Nov 2010. Both its daily and weekly RSI are bullish and pointing higher suggesting further strength. Alternatively, for the pair to reverse its current strength (though not envisaged at its present price levels), a return below the 1.3427 level, its Feb 14'2011 is required. This will switch risk to the downside and bring further losses towards the 1.3245 level and then the 1.3000 level, its big psycho level. All in all, with continued momentum seen, EUR should strengthen through the 1.4083 level and beyond.

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