The pair has returned above the 82.33/40 zone, its Jan 14'2011/Dec 07'2010 lows suggesting a retarget of the 84.50 level could be developing. A break will turn focus to the 85.92 level, its Sept 12'10 high. Price hesitation is likely there but if that level fails and a break above it occurs, we should see further strength targeting its 50 emaat 87.54. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, the risk to our analysis will be a break below its 2010 low at 80.23, which will resume its broader weakness towards its 1995 low at 79.75 and next the 78.00 level. All in all, although the pair remains broadly biased to the downside, it is now facing corrective recovery risk.
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