Prices are testing multi-month range resistance at 1.0578, with a Bearish Engulfing candlestick pattern hinting a move lower is ahead. Channel support is now at 1.0442. A drop below that initially exposes the 1.04 figure. Alternatively, a break above resistance targets channel line resistance at 1.0643.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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