Prices are testing key support at 1.2177, a level dating to May 2010, with a break lower initially exposing the 1.21 figure. A bullish Engulfing candlestick pattern and positive RSI divergence warns that an interim bounce may materialize before renewed downside however. Near-term resistance lines up at 1.2249, with a break above that exposing upside objectives at 1.2333 and 1.2433.
8hr Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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