Prices are showing a Hammer candlestick above support at 1.2522, the 50%Fibonacci expansion, hinting an upswing may be ahead. Initial resistance lines up at 1.2562, the 38.2% Fib. Alternatively, a break lower exposes a confluence of support marked by the 1.2500 figure, the bottom of a falling channel set from the June 29 swing high (1.2493) and the 61.8% expansion (1.2481).
4hr Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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