Prices are approaching support at the bottom of a rising channel set from late July, a barrier reinforced by the 38.2% Fibonacci retracement at 125.76. A break below the latter level initially exposes the 50% Fib at 124.82. Near-term resistance is at 126.93, the 23.6 retracement, with a push back above that clearing the way for a challenge of the channel top (128.89).
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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