Prices put in a Bearish Engulfing candlestick pattern, hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. Initial support lines up at 106.15, the 23.6% Fibonacci retracement, with a drop below that targeting channel top resistance-turned-support at 105.59 and the 38.2% Fib at 105.03. Near-term resistance is at 107.95, the December 5 high.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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