Prices are approaching support at 1.2130, the 61.8% Fibonacci expansion, with a break below this barrier exposing the 1.20 figure and the 76.4% level at 1.1985. Near-term resistance lines up at Near-term resistance lines up at 1.2249, the 50% Fib. A reversal back above this boundary targets the 38.2% expansion at 1.2367.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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