Prices completed a bearish Three Inside Down candlestick pattern below falling trend line resistance set from May 2011 and broke through upward-sloping support set from the June swing bottom, hinting a significant reversal is at hand. Initial support lines up at 1.2826, the 23.6% Fibonacci expansion level. A reversal back above the trend line (now at 1.3009) exposes a long-term downward-sloping barrier at 1.3094.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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