Prices are testing back below the 38.2%Fibonacci expansion 1.0021, with a break lower exposing the 23.6% level at 0.9965. A drop beneath that targets a rising trend line set from mid-September, now at 0.9903. Near-term resistance is at 1.0066, the 50% Fib, with a push above that targeting the 61.8% expansion at 1.0113. 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