As the pair followed through higher the past week on the back of its previous week bullish run, further bull pressure is set to recapture the 1.2671 level, its May 21'10 high and the 1.2721 level, its July 09'10 high. These two key resistance levels must give in to set the tone for further gains towards the 1.3000 level, its psycho level or even higher. While firmly holding above the 1.2466 level, its Jun 21'10 high, we look for the above view to materialize. On the downside, if a continuation of its Friday weakness occurs, we may see a decline targeting the 1.2466 level where a reversal of roles is expected to turn the pair back up again. However, on a violation of that level risk should open up towards its .50. Fib Ret (1.1875-1.2466 rally) at 1.2169 and the 1.2162 levels, its Jun 14'10 low with a loss of there targeting the 1.2000 level ahead of the 1.1875 level, its 2010 low. A close below that level will have to occur to annul its entire nearer term corrective recovery and bring further weakness towards it's the 1.1801 level.
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