Prices are testing support at 1.5996, the 38.2% Fibonacci retracement level, with a bullish Morning Star candlestick pattern hinting an upswing is ahead. Near-term falling trend line resistance is at 1.6135. A push above this boundary broadly clears the way for another challenge of the 1.63 figure. Alternatively, a break below support exposes the 50% retracement at 1.5899.
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, send a note with subject line "Distribution List" to email@example.com
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.