EURUSD:Recovering With Risk Towards 1.2353/1.2451
EURUSD: Having triggered a corrective recovery following its recent weakness to a low of 1.1875, risk of further strength continues to build up towards its Jun 01'10 high at 1.2353. A decisive cut through there will clear the way for a run at the 1.2451 level, its May 28'10 high where a halt may be seen. Further out, its May 21'10 high at 1.2671 comes in as the next upside target. This view remains valid while EUR continues to trade above the 1.2000/1.1875 zone. Its daily studies which have pulled out of an oversold zone and are pointing higher are supportive of this view. Alternatively, a break and hold below the 1.1875 level, the 2010 low will have to occur to annul its corrective recovery view and bring further weakness towards its Jan'2006 low at 1.1801. A violation of there will open the door for further weakness towards its major support at 1.1640 established in 2005. All in all, having triggered a corrective recovery, the pair now looks to build on those gains.