Prices put in a Bullish Engulfing candlestick above support at the bottom of a falling channel set from the July 24 swing high, hinting a move higher is ahead. Initial resistance stands at a rising trend line established from late May (0.9597), with a break above that exposing the 0.9650-0.9709 area. Channel support is now at 0.9511. A break below that exposes the 50% Fibonacci retracement at 0.9451.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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