Prices put in a Bullish Engulfing candlestick pattern above support at 1.6057, the 76.4% Fibonacci retracement, hinting a move higher is ahead. Resistance is found in the 1.6259-1.6300 area, marked by the late April swing top, with a push above that targeting 1.65 figure and the 123.6% extension at 1.6544. Alternatively, a drop through support exposes the 1.60 figure and the 61.8% level at 1.5906. Risk/reward considerations argue against entering a trade with prices so close to resistance and we will stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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