Prices put in a Bullish Engulfing candlestick pattern above support at 1.2831, the 23.6% Fibonacci expansion, hinting a bounce may be ahead. Resistance lines up at a long-term falling trend line established from May 2011, now at 1.3125. A break above that initially targets 1.3283. Alternatively, a reversal through support exposes a rising trend line set from the July 24 low (1.2653) and the 38.2% Fib (1.2620).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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