MONTHLY CHART Prior breaks of support signalled a medium term bear move was underway.

Recovery from the 50% pullback level found clear resistance from the old triangle.

Below the 0.8065 Jun-10 low next focus would be on potential 0.7783 61.8% support.

DAILY CHART:

The Dec bounce failed around the 0.8649 01-Nov low and close to the underside of the old bull channel.

S/term support at the 76.4% pullback is not a surprise, but this should presently give way to open up a test of the Jun-10 low. Any near term bounce is not expected to be deep.

We will look at lower targets in the FX Specialist Guide in due course.