Having reversed higher from its .50 Fib Ret (1.1875-1.2466 rally) at 1.2169 and the 1.2162 level, its Jun 14'10 low on Wednesday to close higher at 1.2303, risk of a return to its Jun 28'10 high at 1.2396 continues to shape up. A break of there will push EUR further towards the 1.2466 level, its Jun 21'10 high with a firm break above that level setting the stage for more strength targeting its May 21'10 high at 1.2671 and then its psycho level at 1.3000. This view remains valid while the pair continues to trade above the 1.2000/1.1875 zone. On the downside, below the 1.2169/2 zone will resume its decline from the 1.2466 level and then target its psycho level at 1.2000 followed by the 1.1875 level, the 2010 low. Below there will have to be traded to annul its corrective recovery bias and bring further weakness towards its Jan'2006 low at 1.1801 where a violation will target its major support at 1.1640 established in 2005.