Prices completed an inverse Head and Shoulders bottom chart formation, implying a measured upside target at 1.0140. The move likewise cleared resistance at a falling trend line set from the June 4 swing high, reinforcing the case for an upside scenario. Buyers have now taken out resistance at 0.9943, the 38.2% Fibonacci retracement, exposing the 50% level at 1.0039. The 0.9943 level has been recast as support, with a drop back below that targeting resistance-turned-support in the 0.9826-47 area.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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