Prices are testing resistance in the 1.2290-2335 area marked by the 38.2% Fibonacci expansion and the May 31 low. A break higher exposes 1.2442. Near-term support lines up at 1.2148, the 50% Fib expansion. A reversal back below that exposes the psychologically significant 1.20 figure, a level reinforced by the 61.8% expansion.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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