Prices narrowly took out support at 1.2148, the 50% Fibonacci expansion level, but failed to overcome the bottom of a falling channel set from late May. A Hammer candlestick above this boundary warns a bounce may be ahead, with a push back above 1.2148 initially exposing the 38.2% expansion at 1.2290. Alternatively, continued selling targets the 61.8% Fib at 1.2004.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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