With the pair turning sharply lower on Wednesday, further declines could follow. The pair is now correcting its recovery strength set from the 1.3837 level to the 1.4536 level. However, while the pair holds above the 1.4242 and the 1.4142 level, the risk remains towards the 1.4578 level, its July 03'2011 high. An eventual violation of that level will target the 1.4696 level, its Jun 07'2011 high. Further out, the 1.4938 level, its 2011 high comes in as the next upside target. Its daily RSI is bullish and pointing higher supporting this view. Conversely, the risk to our analysis will be a return to the 1.3837 level where a decisive break will resume its short term weakness towards its Mar 06'2011 low at 1.3751. Further support lies at the 1.3700 level, its psycho level.

"Daily