With a halt in its declines from the 1.5143 level established in early Jun'2010 at the 1.1875 level and the subsequent rally driving the pair higher for a second consecutive month, further build up on those gains are likely in the months ahead. Although price hesitation (daily chart) is now underway, the overall recovery initiated from the 1.1875 level remains intact and should target higher prices towards its May 03'10 high at 1.3310 on ending that hesitation. A cut through that level will clear the way for a run at the 1.3500 level, marking its .50 Fib Ret (1.5143-1.1875 decline) followed by the 1.3691 level, its April 12'10 high and then the 1.3884 level, its .618 Fib Ret. Its weekly stochastics remains bullish and pointing higher suggesting trend continuation. However, on pullbacks its violated resistance at its psycho level at 1.3000 and the 1.3027/45 levels, its July 20/27'10 highs as well as its .382 Fib Ret at 1.3109 should reverse roles and provide support thus turning the pair back up again. Below there will target the 1.2721 and the 1.2466 levels with another support located at its .50. Fib Ret (1.1875-1.2466 rally) at 1.2169. On the whole, with upside recovery triggered from the 1.1875 level remaining intact, further higher prices are likely in the weeks ahead.

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