EURUSD: Biased To The Upside On Correction, Pressure Builds On 1.3937 Level.

EURUSD: The pair rallied sharply higher the past week wiping out its two weeks of losses and opening the door for further upside gains in the new week. This is coming on the back of a recovery initiated from the 1.3144 level and with an extension now seen, risk should build up towards the 1.3937 level, its Sept 15'2011 low. Further out, resistance stands at the 1.4283 level, its Sept 06'2011 high. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to our upside view will be a return to its Sept 28'2011 high at 1.3690. We may see a reversal of roles as support at this level turning EUR higher but if taken out, risk will build up on the 1.3377 level, its Oct 10'2011 low and subsequently the 1.3144 level All in all, EUR continues to build on its recovery strength started from the 1.3144 level as it looks to target additional gains in the new week.