Prices turned lower as expected after putting in a bearish Dark Cloud Cover candlestick pattern below multi-month range resistance in the 1.0578-1.0624 area. Buyers are now mounting a shallow recovery from support at a rising trend line set from late October (1.0391). Near-term resistance is at 1.0537, marked by a rising trend line set from the December 26 low, with a break above that targeting 1.0578-1.0624 anew. Alternatively, a reversal through support eyes swing lows at 1.0344 and 1.0286.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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