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EURUSD: Turns Higher, Eyes Key Resistance.

EURUSD: Having continued to strengthen for a second day in a row, risk could be building up for a return to its key resistance at the 1.3171 level. This view remains valid unless a violation of the 1.2890/22 levels occurs. A breach of the 1.3171 level will resume its broader uptrend towards the 1.3282 level with a cut through here calling for a move further higher towards its weekly ema at 1.3415 level. Conversely, the pair will have to break and hold below the 1.2890/22 levels to put its medium term uptrend bias on hold. This if it occurs should bring deeper weakness towards the 1.2755 level. We expect a cap to occur here and possibly turn the pair higher again. But if broken, expect further declines to develop towards the 1.2625 level. All in all, EUR faces further upside threats medium term.