This pair has fallen back down to support from the major trendline from the June ‘10 lows, as anticipated. From here it could launch another rally with a target just short of the recent highs at 1.3850.
Alternatively there is a possibility of a break down – possibly even a collapse. If so then the next substantial support grouping at 1.3650 could be expected to at least stall any bear moves.
by Joaquin Monfort, Analytical expert , Forex4You © 2011
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