Prices broke long-term trend line resistance set from May 2011, exposing the 38.2% Fibonacci expansion at 1.3092. This barrier is reinforced the top of a falling channel set from the September 17 swing high. A break above that targets the 50% level at 1.3223. Trend line resistance-turned-support is at 1.2987, with a break below that exposing the 23.6% Fib at 1.2925.

Daily Chart - Created Using FXCM Marketscope 2.0

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

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.