Prices put in a Bearish Engulfing candlestick pattern below resistance at 1.2334, the 23.6% Fibonacci retracement reinforced by a falling trend line set from late April, hinting a move downward is ahead. Initial support lines up at 1.2181, with a break below that exposing 1.2059. Alternatively, a push above the trend line on a daily closing basis targets the 38.2% Fib at 1.2516.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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