Prices bounced from support at 77.95, the 23.6% Fibonacci retracement, to test the 38.2% level at 78.45. A break above that exposes the top of a falling channel set from late June, now at 78.79. Alternatively, a reversal below support targets 77.47. Risk/reward considerations argue against entering a trade at current levels and we will stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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