The pair may have failed to follow through higher on its past week strength and collapsed in early trading today, but we still believe its recovery off the 1.2874 level, its 2011 low is not over yet. EUR should make another fresh attempt on the 1.3453/94 zone again on ending its present corrective pullbacks. The mentioned zone is a very significant resistance zone which the pair must break to continue its run from the 1.2874 level towards the 1.3785 level. Beyond that level will bring further gains towards the 1.4281 level traded in early Nov 2010. On the other hand, on continued weakness the pair should aim at 1.3165 level, its .50 Fib Ret (1.2874-1.3453 rally) with a violation of there targeting the 1.3088 level, its Jan 13'2011 low at 1.3088. A halt is expected to occur there and turn the pair back up. All in all, though presently under pressure, EUR still retains its corrective tone set from the 1.2874 level.

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