EURUSD: The pair has settled into a consolidation after reversing most of intra gains to close slightly higher on Wednesday. However, risk still remains to the upside towards the 1.3913/37 levels, its Oct 17’/Sept 15’2011 highs. Above here will bring further gains towards its big psycho level at 1.4000 and then the 1.4283 level, its Sept 06’2011 high. Its daily RSI is bearish and pointing higher. On the downside, the risk to this analysis will be for the pair to return below the 1.3690/50 levels. This will activate further declines towards its Oct 10’2011 low at 1.3377. Further down, support comes in at the 1.3144 level, its Oct’2011 low where a break will resume its medium term weakness towards the 1.3000 level, its big psycho level. All in all, with EUR maintaining its recovery tone above the 1.3650/90 levels, risk of further upside gain remains a possibility.
