Prices are testing above pivotal falling trend line resistance set from May 2011, a barrier reinforced by the 23.6% Fibonacci expansion at 1.3068. A confirmed break on a daily close above this boundary threatens to mark a major medium-term trend reversal, initially targeting the 38.2% level at 1.3235. Support remains at rising trend line set from the June swing bottom, now at 1.2914.A drop below that aims for 1.2823.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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