Having reversed about 80% of its two-week gains to close lower at 0.9444 at the end of the week, we are looking for that weakness to continue in the new week. This development will leave the pair targeting the 0.9327 level at first with a loss of there targeting the 0.9297 level, representing its 2011 low. A cut through that level will call for the resumption of its long-term downtrend towards the 0.9200 level with a violation paving the way for further weakness towards the 0.9100 and then the 0.9000 level, all representing its psycho levels. Its weekly RSI is bearish and pointing lower supporting this view. Conversely, for the pair to reverse its current downside vulnerability, a climb back above the 0.9772/83 levels must occur. This will set the pair up for further strength towards the 0.9913 level, its Dec 08'2011 high and then the 1.0066 level, its Dec 01'2010 high. A cap is likely to occur and turn it back down at that level. All in all, the pair remains vulnerable to the downside in the long-term.
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