Strategy: Flat
Prices are testing resistance at the top of a minor falling channel set from the September 14 high, a barrier reinforced by the 23.6%Fibonacci expansion at 1.0322. A break above the latter level broadly targets major trend line resistance at 1.0536. Support stands at 1.0136, the 38.2% Fib. A drop below that aims for the channel bottom at 1.0073. Risk/reward considerations argue against entering at trade at current levels and we will remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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