Prices turned lower as expected after putting in a bearish Dark Cloud Cover candlestick pattern below multi-month range resistance in the 1.0578-1.0624 area. Sellers have now cleared initial trend line support to target a larger upward-sloping barrier at 1.0424. A break below that exposes the December 26 low at 1.0344. Trend line support-turned-resistance is now at 1.0521.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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