Although EUR closed higher the past week on correction, it continues to look vulnerable. While its recovery is capped by the 1.3387 level, our outlook on EUR remains lower with eyes on 1.2993 level. Below here will open the door for a run at the 1.2879 level, its Jan 23'2011 low. On the other hand, the pair will have to break and hold above the 1.3387 level to set the stage for further correction. This will leave the pair targeting the 1.3484 level with a cut through here pushing 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. All in all, EUR remains biased to the downside though attempting a recovery.
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