Prices are turning cautiously lower after putting in a Shooting Star candlestick, hinting a reversal may be brewing. Early signs of negative RSI divergence reinforce the possibility of a downside scenario. Initial support lines up at 110.71, the 14.6% Fibonacci retracement, with a break below that exposing the 23.6% mark at 109.62. Near-term resistance is at 112.49, the December 19 high.
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
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.