With the pair rejecting lower level prices to close slightly higher on a hammer-like candle pattern on Monday and following through higher in today's trading session, risk of further recovery is now building up. If this is fully triggered, EUR should take back some of its recent losses and possibly target the 1.3799 level, its Sept'2011 high. A break through here will expose the 1.3936 level, its Sept 09'2011 high where a halt is likely to occur and turn the pair back down. Alternatively, a return below the 1.3362 level, its Sept'2011 low will call for further weakness towards the 1.3245 level, its Jan 17'2011 low. Further down, support comes in at 1.3088 level, its Jan 11'2011 low. All in all, although presently trying to build up strength to recover high, EUR continues to retain its medium term bearish theme.

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