Prices are drifting cautiously lower after putting in a bearish Dark Cloud Cover candlestick pattern below falling trend line resistance set from mid-December. Initial support is in the 0.8315-55 area, with a break below that targeting rising channel support at 0.8254. Alternatively, a push above resistance (now at 0.8447) exposes the August 31 2011 high at 0.8571. Risk/reward considerations argue against entering a trade at current levels with prices so close to support and we will stand side for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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