Prices are testing above resistance at 128.57, the 38.2% Fibonacci expansion, to aim for the 50% level at 129.47. This barrier is reinforced by the top of a rising channel set from the June 1 low (130.05). Alternatively, a reversal back below 128.57 targets minor channel resistance-turned-support at 126.53.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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