Prices bounced from support at 1.2831, the 23.6% Fibonacci expansion, as expected after putting a Bullish Engulfing candlestick pattern. The bulls now aim to challenge resistance at a falling trend line established from May 2011, now at 1.3103. A break above that initially targets 1.3283. Alternatively, a reversal through support initially targets the 38.2% Fib (1.2620).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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