Prices put in a Shooting Star candlestick below falling trend line resistance set from mid-June, a barrier reinforced by the 50% Fibonacci retracement at 1.2394, hinting at a loss of bullish conviction and warning a downswing may be ahead. Initial support lines up at 1.2311, the 38.2% Fib. Trend line resistance is now at 1.2431, with a break above that exposing the 61.8% retracement at 1.2477.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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- Fibonacci retracement