The Week Ahead

EURUSD: Returns Above Key Resistance, Bull Pressure Set To Extend. 

EURUSD: With EUR following through higher on the back of its previous week gains to break and hold above the 1.2442 level, it faces the risk of further bullish offensive into the new week. In such a case, the 1.2588 level comes in as the initial resistance where a violation will call for a move higher towards the 1.2692 level. A breach will pave the way for a run at the 1.2748 level. Its weekly RSI is bullish and pointing higher suggesting further strength. The alternative scenario will be for the pair to return to the 1.2442 level. A reversal of roles as support is likely to occur here but if that fails the pair could weaken further towards the 1.2239 level. A clearance of here will set the stage for a move further lower towards the 1.2132/17 levels. Further down, support stands at the 1.2040 level. All in all, EUR continues to face recovery threats having followed through higher the past week.