WEEKLY CHART: The reversal in trend at the 76.4% recovery mark saw a steady decline to the 61.8% pullback level around 1.3400, which has provided nice s/term support.

But a failure to push through first key resistance (see below) would turn our focus towards the lower 76.4% just under 1.3000.

DAILY CHART:

The s/term chart structure had previously started to suggest that bears were getting weary on the approach to 61.8%.

However, in the FX Specialist Guide we have been looking at the 23.6% retracement area, at 1.3835, as first key resistance.

In which case tough resistance would be expected at/below the 1.4216 Dec-09 low.

Meanwhile the Mar low and 61.8% level stay vulnerable - note that there is currently an interesting Fibo projection (not shown) that nicely coincides with the 76.4% level just below 1.3000...