The cross has halted its weakness and triggered a recovery higher but continues to maintain its short term downtrend bias. This suggests that on ending its present correction, it will resume its weakness with the risk of returning to its key support at the 116.78 level. Below here will resume its long term weakness towards the 115.00 level, its psycho level and then the 114.00 level. Alternatively, on continued corrective offensive, the pair will aim at the 123.14 level, its Nov 15'2011 high. However, it will have to break and hold above the 127.30/21 levels to resume its uptrend started from the 116.99 level. This will set the stage for further strength towards the 128.85 level, its Aug 08'2011 high and subsequently, the 130.78 level, its Aug 04'2011 high. All in all, the cross is biased to the downside in the short term but faces bear risk in the immediate term.
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