EURUSD: The pair remains susceptible to the downside and may return to its last week low at 1.2975 following a lower close at the end of the week.Below here will extend weakness towards the 1.2856/75 level, its Dec 29’2011 low/Jan 2011 low. Further down, support lies at the 1.2624 level where a loss will resume its medium term weakness and aim at the 1.2587 level, its Aug 2010 low. Alternatively, EUR must break and close above the 1.3322 level to annul its present bear threats and then target the 1.3375 level, its Dec 12’12 level. On further price extension, EUR should aim at the 1.3484 level, its Dec 05’2011 high and possibly higher towards its Dec 02’2011 high at 1.3547. All in all, EUR continues to retain its bullish corrective recovery tone despite its present price hesitation.

Attached Images