Having continued its upside offensive, EUR now looks to decisively break and hold above the 1.3859 level, representing its Feb 02'2011 high. This will put it in a position to resume its short-term uptrend and strengthen further towards its Nov 08'2010 high at 1.4083 and then the 1.4281 level traded in early Nov 2010. Both its daily and weekly RSI are bullish and pointing higher suggesting further strength. Alternatively, for the pair to reverse its current strength (though not envisaged at its present price levels), a return below the 1.3427 level, its Feb 14'2011 is required. This will switch risk to the downside and bring further losses towards the 1.3245 level and then the 1.3000 level, its big psycho level.

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