Prices declined as expected after putting in a Harami candlestick pattern below multi-month range resistance at 1.0578. Sellers have now taken out support in the 1.0410-18, marked by the 38.2% Fibonacci retracement and the bottom of a rising channel set from early October. The next downside objective is at 1.0366, the 50% retracement. Alternatively, a reversal back above 1.0418 aims for the 23.6% level at 1.0482.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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