Prices broke support at rising trend line and the 23.6% Fibonacci retracement at 0.8136 after putting in a Bearish Engulfing candlestick pattern. Negative RSI divergence reinforces the case for a downside scenario. Sellers now aim to challenge the 38.2% Fib at 0.8117. A break below that that exposes the 50% mark at 0.8101. The 0.8136 level has been recast as resistance, with a reversal back above that targeting the trend line (now at 0.8144) anew.
4hr Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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