With the pair now strengthening following a halt of its two-day weakness started from the 1.3913 level, further upside risk is seen towards the 1.3913/37 levels.Above here will bring further gains towards its big psycho level at 1.4000 and then the 1.4283 level, its Sept 06'2011 high. Its daily RSI is bearish and pointing higher. On the downside, the risk to this analysis will be for the pair to return below the 1.3144 level, its Oct'2011 low annulling its entire corrective strength and then targeting 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 above the 1.3690 level, risk of further upside gain remains a possibility.
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