Weekly Technical Strategist: EURUSD

[FXTechstrategy Team]

EURUSD: EUR has triggered a strong recovery rallying off its Jan’2012 low at 1.2620 level to close higher at 1.2928 level.This development leaves the pair bullish into the new week with the risk of strengthening further towards the 1.3074 level and then the 1.3197 level. Above here if seen will aim at the 1.3212 level, its Nov 25’2011 low. Its weekly RSI has turned higher supporting this view. On the other hand, if the pair fails to continue its recovery we may see it returning to the 1.2620 level where a break will resume its medium term weakness towards the 1.2587 level, its Aug 2010 low. We may see a breather here triggering a correction if tested but if that level is breached, expect the pair to weaken further towards the 1.2479 level. Further down, support comes in at the 1.2400 level, its psycho level. All in all, EUR maintains its medium term downtrend as it looks to weaken further.