Prices broke long-term trend line resistance set from May 2011, exposing the 38.2% Fibonacci expansion at 1.3092. This barrier is reinforced the top of a falling channel set from the September 17 swing high. A break above that targets the 50% level at 1.3223. Trend line resistance-turned-support is at 1.2992, with a break below that exposing the 23.6% Fib at 1.2925.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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