EURUSD: With a temporary halt in price seen at the 1.3442 level, its 2010 low and the 1.3450 level, its Feb 25'10 low triggering a sharp rally on Friday, risk of a continuation of that strength is now expected to target its Feb 23'10 high at 1.3691 as a new week/month begins. Having said that, on further correction, upside targets are seen at the 1.3787 level, its Feb 17'10 high and then its Feb 01'10 high/Feb 09'10 low at the 1.3838/51 levels. We expect the latter zone to cap corrective recovery gains if seen and turn EUR back lower again. Some warning signs are seen on the weekly chart such as a dojicandle and a high-wave candle (printed the previous week) which supports the pair's recovery view .On the other hand, if the above view fails to pan out, threats of a recapture of its 2010 low at 1.3442 cannot be ruled out with a loss of there activating further weakness towards the 1.3422/09 levels. Below the latter will set the stage for further downside pressure towards its Jun 03'09 low at 1.3211 and next its big psycho level at 1.5000.

width=400