Prices broke above resistance at the top of a falling channel set from mid-September, a barrier reinforced by the 38.2% Fibonacci expansion at 1.3090. The pair is now testing the September 14 high at 1.3168, with a break above that aiming for the 50% level at 1.3222. The 1.3090 has been recast as support. A push below that exposes the 23.6% Fib at 1.2924.

Forex_Analysis_EURUSD_Classic_Technical_Report_12.17.2012_body_Picture_1.png, Forex Analysis: EUR/USD Classic Technical Report 12.17.2012

Daily Chart - Created Using FXCM Marketscope 2.0

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

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