Despite its Tuesday back off the 1.3855 level to close lower, we still see risk of a return above that level and towards the 1.3859 level, representing its Feb 02'2011 high. This will put EUR 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. 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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