Prices are re

Prices are retesting the 23.6% Fibonacci expansion level at 1.2830, a barrier reinforced by a falling trend line resistance set from the October 17 high (1.2846). A break above that exposes a larger trend line established from May 2011, now at 1.3020. Near-term support is at the 1.27 figure, with a drop below that aiming for the 38.2% Fib at 1.2620. We continue to hold short.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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