Although EUR continues to hesitate on the back of its strong last week strength, its recovery tone set from the 1.3837 level remains valid and intact. This suggests that its present range trading scenario should eventually fade and bring further strength towards the 1.4578 level, its July 03'2011 high with a violation of that level allowing for more recovery gains towards the 1.4696 level, its Jun 07'2011 high. Further out, the 1.4938 level, its 2011 high comes in as the next upside target. Its daily RSI is bullish and pointing higher supporting this view. Conversely, the risk to our analysis will be a return to the 1.3837 level where a decisive break will resume its short term weakness towards its Mar 06'2011 low at 1.3751 and possibly lower.