Having rallied and broken the 1.3074 level and the 1.3197 level, EUR now looks to strengthen further with eyes on the 1.3375 level, its Dec 12'12 level. On further price extension, the pair should target the 1.3484 level, its Dec 05'2011 high and possibly higher towards its Dec 02'2011 high at 1.3547. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullback, the 1.3197 level will be targeted ahead of the 1.3074 level where a reversal of roles as support is likely to occur and turn the pair back up. However, if that level is taken out, further declines is expected towards the 1.2856/75 level, its Dec 29'2011 low/Jan 2011 low. Further down, support lies at the 1.2624 level where a loss will resume its medium term weakness and aim at the 1.2587 level, its Aug 2010 low. All in all, EUR continues to retain its corrective recovery tone as it looks to extend further bullish momentum.

Weekly