Although the pair closed marginally higher the past week, EUR continues to hold on to its recovery tone set from the 1.3144 level. This leaves scope for further strength towards the 1.3937 level, its Sept 15'2011 low. Further out, resistance stands at the 1.4283 level, its Sept 06'2011 high. And possibly higher towards the 1.4498 level. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to our upside view will be a return to its Sept 28'2011 high at 1.3690 and its Oct 18'2011 low at 1.3650. We may see a reversal of roles as support at this level turning EUR higher but if taken out, risk will build up on the 1.3377 level, its Oct 10'2011 low and subsequently the 1.3144 level. All in all, EUR continues to build on its recovery strength started from the 1.3144 level.

/