The pair continues to face recovery threats as EUR looks to strengthen further in the new week. However, it will have to break and hold above the 1.2687 level to open the door for further upside. In such a case, the 1.2733 level, its Jan 18'2011 low will be targeted where a violation will aim at the 12824 level. Its weekly RSI is bullish and pointing higher suggesting further strength. The alternative scenario will be for the pair to return to the 1.2286 level where a violation will call for a run at the 1.2149 level. EUR could turn higher on testing and holding at this level but if that breaks, further declines could shape up towards the 1.2100 level. All in all, EUR remains biased to the downside medium term though facing recovery risks.

Weekly