Prices put in a Harami candlestick pattern below resistance in the 1.6259-1.6300 area marked by the late April swing top, hinting a move lower may be ahead. Initial support stands at a falling trend line set from April 2011, now at 1.6125. A break below that exposes the 76.4% Fibonacci retracement at 1.6057. Alternatively, a push above resistance targets the 1.65 figure and 1.6544.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail email@example.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to firstname.lastname@example.org