Prices took out resistance at 98.53, a former range bottom, to test the top of a rising channel set from the July 24 low (99.15). This barrier is reinforced by the upper boundary of a larger channel carved out since late May, now at 99.58. A break above the latter level targets the 100.00 figure, followed by the 101.38-62 area. The 98.53 level has been recast as support, with a break back below that aiming for the smaller channel bottom now at 96.76.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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