Prices declined as expected after putting in a Harami candlestick pattern below multi-month range resistance at 1.0578. Near-term support lines up at 1.0482, the 23.6% Fibonacci retracement. This barrier is reinforced by the bottom of a rising channel set from the October 8 low. A break downward exposes the 38.2% level at 1.0418. Alternatively, a push above resistance targets channel line resistance at 1.0656.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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