Having followed -through lower on the back of its Monday losses, the cross now looks to weaken further after cutting through the 107.30 level, its 2010 low in today's trading. With a failure of that level seen, the 106.75 level, its Sept'2001 low will be aimed at ahead of its psycho level at 105.00. Its daily studies are bullish and pointing higher supporting this view. Conversely, to reverse its current downside tone, a break and hold above its May 29'10 high at 114.78 must be established to create scope for further strength towards the 115.46 level, its May 18'10 high and then the 119.63 level, its Feb 25'10 high. Overall, with a sharp decline occurring today, risk of further lower prices continues to shape up.
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