Prices are consolidating above support at 88.22, 23.6% Fibonacci retracement, with a Bearish Engulfing candlestick pattern coupled with negative RSI divergence warning of a downside scenario. A break below support targets the 38.2% level at 86.97. Near-term resistance is at 90.24, the January 21 high.
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.