Prices broke support at 1.5822, the November 15 low, exposing the 1.5736-46 area marked by a former resistance level and the 123.6% Fibonacci expansion. A further push below that aims for the 138.2% Fib at 1.5695. The 1.5822 level has been recast as near-term resistance, with a reversal back above that eyeing the 76.4% expansion at 1.5912. Current positioning does not offer an attractive entry point from a risk/reward perspective and we will remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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