EURUSD: Retains Corrective Tone, Key Overhead Resistance Targeted.
EURUSD - With hammer-like candle formation driving EUR higher to close higher the past week, the risk is for further strength to occur. Though presently seen hesitating, most of its last week gains are still in place suggesting we could see the pair recapture the 1.2748 level where a break will annul its broader downside threats and pave the way for a move further higher towards the 1.2824 level Further out, a cut through here will target the 1.2902 level. Its weekly RSI is bullish and pointing higher supporting this view. The alternative scenario will be for the pair to return below the 1.2407 level. This should push it further lower towards the 1.2286 level. Below here will resume its broader medium term weakness and call for a run at the 1.2149 level. EUR may turn higher on testing this level but if that breaks, further declines could shape up towards the 1.2100 level. All in all, EUR remains biased to the upside on further recovery.