Prices are edging lower after putting in a bearish Dark Cloud Cover candlestick pattern. Initial support is at 110.71, the 14.6% Fibonacci retracement. A break below that targets the 23.6% level at 109.62. Near-term term resistance is at 112.49, the December 19 high.

8hr Chart - Created Using FXCM Marketscope 2.0

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

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