WEEKLY CHART Recovery prompted by the long term bear channel base exceeded the 23.6% retracement (of the downmove from Dec-08 1.5881 high), but so far has shied away from higher 1.3955 38.2% level.

The recent key reversal week marked the start of a period of correction, but this resumed temporary (see below).

DAILY CHART:

The earlier breach of the bear channel top projection suggested that bears' momentum had weakened, with the current correction phase viewed as temporary.

We currently focus on the 1.3070/1.3015 area, early Jun low and 76.4% pullback, where support looks likely.

However, a recovery through the 1.3834 01-Nov high is needed to give bulls further confidence.