EURUSD: The pair is building slowly on its corrective recovery following through to the upside on its Monday marginal gains in early morning trading today. This has left risk targeting the 1.3733/47 level, its Jun 16'09 low/.50 retracement (1.2328-1.5143 rally) initially and then its July'09 lows at 1.3831. We expect a combination of these key levels to reverse roles and provide support thereby turning the pair lower. Further out, the 1.4025/28 levels, its Jan 21'10 low/Feb 03'10 high and the 1.4194 level, its Jan 25'10 high come in as the next resistance levels. On the downside, its Feb 08'10 low at 1.3620 comes in as the immediate downside target with a break through that level allowing the pair to weaken further towards 2010 low at 1.3584. A clean violation of the latter will call for the resumption of its medium term weakness towards its .61 Fib retracement/May 18'09 low at 1.3422/09 with a loss of there extending further declines towards its Jun 03'09 low at 1.3211.
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