Prices took out resistance at 127.08, a former support level reinforced by the top of a falling channel set from the September 19 swing high. From here the bulls aim to target the top of a larger rising channel, now at 129.82. The 127.08 level has been recast as support, with a turn back below that targeting the 38.2% Fibonacci retracement at 124.98.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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