EURUSD: The pair remains vulnerable to the downside on correction. With a follow through to the downside underway, further declines is likely towards the 1.2812 level and then the 1.2755 level. We expect a cap to occur here and possibly turn the pair higher again. However, to reverse its present weakness and resume its short term uptrend, it will have to overcome the 1.3171 level. Further out, resistance stands at the 1.3282 level where a violation will call for a move further higher towards its weekly ema at 1.3415 level. All in all, EUR continues to maintain its short term uptrend despite its price correction.
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