Prices put in a Harami candlestick patter above support at the bottom of a rising channel set from mid-July, hinting a bounce may be ahead. Initial resistance is at 1.0322, the 23.6% Fibonacci expansion, with a break above that exposing major trend line resistance at 1.0543. Alternatively, a push below the channel bottom (1.0199) targets the 38.2% level at 1.0136. Risk/reward considerations argue against entering at trade at current levels and we will remain on the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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