Strategy: Flat
Prices put in Shooting Star candlestick below resistance at 89.09, the 50% Fibonacci expansion, warning a move lower may be ahead. Initial support is at 88.55, marked by the 38.2% Fib, with a break below that targeting the January 4 high at 88.40. Alternatively, a break higher targets the 61.8% Fib at 89.63. We will look for a pullback to yield a long trade setup in line with our long-term view.
4hr 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.