Prices are pulling back from resistance at the top of a rising channel set from early December (1.3472), a barrier reinforced by the 76.4% Fibonacci expansion at 1.3492. Negative RSI divergence reinforces the case for a downside scenario. Near-term support is at 1.3397, the 61.8% level. A break below that aims for the 1.33 figure and the 38.2% expansion at 1.3244.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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