After reversing its Tuesday weakness on a rally on Wednesday, risk of further corrective recovery is likely. This leaves the immediate resistance at the 1.2622 level, its May 28'2012 high. A decisive clearance of here will call for move higher towards the 1.2733 level, its Jan 18'2011 low and then the 1.2824 level. Its daily RSI is bullish and pointing higher supporting this view. On the other hand, the risk to this analysis will be a return to the 1.2408 level, its Jun 05'2012 low. A cut through here will pave the way for a move lower towards the 1.2286 level. Further down, support lies at the 1.2149 level. The pair could turn higher on testing this level but if that breaks, further declines could shape up towards the 1.2100 level. All in all, EUR remains biased to the downside medium term though facing recovery risks.
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