Prices put in a Bearish Engulfing candlestick formation below resistance at the top of a Descending Triangle chart pattern carved out since late August, hinting a move lower is ahead. Initial support lines up at 1.0374, the bottom of a Rising Wedge set from the early-October sewing bottom, with a break beneath that targeting the 23.6% Fibonacci expansion at 1.0324. Major resistance is effectively at the 1.05 figure, with a push above that exposing the August 9 close at 1.0578. We continue to hold short.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail firstname.lastname@example.org. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.