While our bias remains higher, we will like to see a firm break and hold above the 1.3494 level, its Dec 14'2011 to convince the market of further gains. That level is congested with other resistance levels, and the pair needs to decisively break and hold above the 1.3494 level to trigger further upside gains towards the 1.3785 level, its Nov 22'2010 and possibly higher towards the 1.3970 level. Its daily RSI is supportive of this view as it is pointing higher. On the downside, below its 2011 low at 1.2874 will have to be traded to reverse its current upside offensive. This will open the door for a decline towards the 1.2713 level and subsequently the 1.2600 level. All in all, with a bullish recovery tone seen, risk remains for a recapture of the 1.3494 level and beyond.

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