WEEKLY CHART:

On the Weekly chart note the clear falling resistance line, providing a cap on action in 2010.

This follows the false break below old 87.11 support.

This line, running through 91.70 currently, was violated yesterday (although a weekly close above this would be preferable), and now a further recovery past the 93.76 early Jan high would confirm a new bull trend was underway.

DAILY CHART:

This year's slip back found good support from the 61.8% retracement, coinciding with the early Oct-09 low just under 88.00.

In the FX Specialist Guide we have said that a recovery/close above the 92.14 19-Feb high would provide an initial bull signal (just seen yesterday), the second being the continuation above the 93.76 Jan high.

A target area opens up - an equality target just above 97.00 (Nov-Jan upleg extended off 88.10 Feb low), the 76.4% recovery level around 97.50 and higher Fibonacci projection at 98.75.

At this stage a drop back and close below the 90.00/89.75 area would negate the current s/term positive picture.