Prices put in a bearish Dark Cloud Cover candlestick pattern below resistance at the top of a falling channel set from mid-September (1.3093), hinting a move lower is ahead. Initial support lines up at the 23.6% Fibonacci expansion (1.3012), a level reinforced by a rising trend line established from the November 13 low (now squarely at 1.30). A break below that exposes the 38.2% Fib at 1.2942. Alternatively, a break above the channel top targets the October 17 high at 1.3138, followed by the 123.6% extension at 1.3252.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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