Prices put in a Bullish Engulfing candlestick pattern above rising trend line support set from mid-September and took out initial resistance lines up at 0.9965, the 23.6% Fibonacci expansion. The bulls now aim to challenge the 38.2% level at 1.0021, with a break above that exposing the 50% Fib at 1.0067. The 0.9965 level has been recast as near-term support, with a break below that aiming for the trend line at 0.9876. Overall positioning continues to favor a move to a measured upside target at 1.0140 after the pair completed an inverse Head and Shoulders bottom on October 19.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail firstname.lastname@example.org. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE