Prices are testing critical resistance at a falling trend line capping gains over the past 12 months, with a Bearish Engulfing candlestick pattern hinting a move lower is ahead. Initial support is in the 0.8058-92 area, with a break below that exposing trend line resistance-turned-support now at 0.7969. Resistance is now at 0.8190, with a breach above that initially targeting 0.8262.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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