EURUSD

EURUSD: Bullish Momentum Remains Despite Price Hesitation(Weekly Technical Strategist).

EURUSD: Despite a marginal lower close due to pricehesitation the past week, its broader upside outlook remains intact. The pairmust break and hold above the 1.3233 level to strengthen further with eyes onthe 1.3375 level, its Dec 12’12 level. On further price extension, EUR shouldtarget the 1.3484 level, its Dec 05’2011 high and possibly higher towards itsDec 02’2011 high at 1.3547. Its weekly RSI is bullish and pointing highersuggesting further strength. Alternatively, on any pullback, the 1.3074 levelwill be targeted where a reversal of roles as support is likely to occur andturn the pair back up.
However, if that level is taken out, further declines isexpected towards the 1.2856/75 level, its Dec 29’2011 low/Jan 2011 low. Furtherdown, support lies at the 1.2624 level where a loss will resume its medium termweakness and aim at the 1.2587 level, its Aug 2010 low. All in all, EURcontinues to retain its corrective recovery tone despite a hitch the past week.