Having taken out the 1.6472 level, its Aug 01'2011 high, the stage is now set for an eventual violation of the 1.6546 level, its May 31'2011 high.This level was tested on Wednesday but held. A clearance of this level will create additional strength towards the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to our analysis will be a return below the 1.6472 level but the bigger risk will be a break and hold below the 1.6110 level, its Aug 11'2011 low. This will create scope for more weakness towards the 1.6006 level. Further downside, the big support stands at the 1.5778 level, its July'2011 low.

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