Prices bounced from rising trend line support set from the mid-September bottom, with the outlines of a Flag chart formation hinting at bullish continuation. A Piercing Line candlestick pattern reinforces the case for an upside scenario. A break above Flag resistance at 9965 on a daily closing basis initially exposes the 23.6% Fibonacci expansion at 9995. Alternatively, a drop below the trend line (now at 9945) targets the Flag bottom at 9885.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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