Prices pulled back to test support at 0.8223 after putting in a Shooting Star candlestick below resistance at falling trend line set from late-August 2011. A break below this barrier initially exposes 0.8047. Alternatively, a break above the trend line (now at 0.8350) targets the top of a rising channel established from the May 2012 lows at 0.8415. Current positioning doesn’t offer an attractive entry point from a risk/reward perspective 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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