The pair reversed its Friday gains on Monday halting its recent recovery strength and turning its immediate risk to the downside. However, while this occurs above the 1.3690 level, its Sept 28'2011 high, there is risk of a return to 1.3937 level, its Sept 15'2011 high. This will bring further upside gains towards its big psycho level at 1.4000 and then the 1.4283 level, its Sept 06'2011 high. On the downside, the risk to this analysis will be for the pair to return below below the 1.3690 leve. However, the ultimate target is the 1.3144 level, its Oct'2011 low where a break will annul its entire corrective strength and then resume its medium weakness towards the 1.3000 level, its big psycho level. Price hesitation ahead of or at this level could occur and turn the pair back up but if taken out, further weakness should shape up towards the 1.2875. All in all, with EUR maintaining its recovery tone while holding above the 1.3690 level, risk of further upside gain remains.
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