Having sold off on Tuesday and remaining vulnerable, the minimum target on the downside resides at 0.9114 level. This suggests that it could retarget the 0.9063/75 level, its Nov 30'2011 low.50 Fib Ret (0.8558-0.9591 rally) on a loss of that level. A violation of here will extend price weakness towards its psycho level at 0.9000. We may see a breather here due to the psychological nature of this support level but if taken out, expect more declines to build up towards the 0.8890 level, its Nov 03'2011 low. Its daily and weekly RSI are bearish and pointing lower supporting this view. Alternatively, on any recovery, the pair will aim at the 0.9175 level, its Dec 08'2011 low followed by the 0.9240/5level where a reversal of roles as support is likely to occur and turn it lower. However, if this fails to hold as resistance, the pair could strengthen further towards the 0.9504 level, its Jan 13'2012 low and then the 0.9591 level. On the whole, the pair remains biased to the downside on further weakness nearer term.

Daily