EURUSD: Recovery Set To Extend, Key Resistance Targeted

We continue to see pressure mount on the upside as EUR holds on to its recovery tone set from the 1.2993 level. This development is now leaves EUR targeting further upside towards the 1.3387 level. The pair requires a decisive break and hold above here to end its broader weakness and turn attention to the 1.3484 level. A cut through here will push the pair further higher towards its Dec 02'2011 high at 1.3547. Further out, price extension if seen will aim at its weekly 200 ema at 1.3642. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the major risk will be for EUR to reverse its present upside and return to the 1.2993 level. Below here will open the door for a run at the 1.2879 level, its Jan 23'2011 low. All in all, EUR remains biased to the upside nearer term.