Strategy: Flat

Prices bounced from support at 1.2831, the 23.6% Fibonacci expansion, as expected after putting a Bullish Engulfing candlestick pattern. The bulls now aim to challenge resistance at a falling trend line established from May 2011, now at 1.3103. A break above that initially targets 1.3283. Alternatively, a reversal through support initially targets the 38.2% Fib (1.2620). Current positioning doesn’t offer an actionable trade setup and we will stand side for now.

EURUSD_Trend-Defining_Resistance_at_Risk_body_Picture_5.png, EURUSD: Trend-Defining Resistance at Risk

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, e-mail 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

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed