Having conquered the 1.2466 level, its Jun 21’10 high following its Thursday rally and Friday strength, the stage is now set for a run at its major resistance residing at the 1.2671 level, its May 21’10 high. A clean break and hold above there will call for a further push towards the 1.3000 level, its psycho level and even higher. A cap may be seen at that level(1.3000) thus turning the pair back down again. On the downside, a violation of its .50 Fib Ret (1.1875-1.2466 rally) at 1.2169 and the 1.2162 level, its Jun 14’10 low will have to occur to reverse its present strength and target the 1.2000 level ahead of the 1.1875 level, its 2010 low. A close below there will annul its entire corrective recovery bias and bring further weakness towards it’s the 1.1801 level where a breach.

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