Prices put in a Hammer above rising trend line support set from late July, hinting a rebound may be ahead. Initial resistance is at 1.3150, marked by the 23.6% Fibonacci expansion. A break above that aims for the 38.2% level at 1.3244. Alternatively, a drop through the trend line (now at 1.2994) aims for the December 7 low at 1.2875.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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