EUR continues to build up on its recovery started from the 1.3604 level, closing higher on Thursday and paving the way for further upside. This development leaves our immediate bias slightly higher with the possibility of further gains towards its 200 daily ema at 1.3948. However, the pair will have to decisively break and hold above its Oct 27'2011 high at 1.4241 level to end its bear threats and resume its short term uptrend towards the 1.4283 level, its Sept 06'2011 high. A violation of here will set the stage for further strength towards the 1.4347 level, its daily falling trendline and subsequently the 1.4550 level, representing its Aug 29'2011 high. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, a return to the 1.3604 level will annul its present recovery attempt and bring further weakness towards the 1.3524 level, its Oct 07'2011 low. All in all, EUR maintains an immediate upside risk though still vulnerable.

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