Prices broke above long-term trend line resistance set from late April 2010, exposing secondary resistance marked by the 38.2% Fibonacci expansion at 129.80. A break above that targets the 50% Fib at 131.09. The first major level of support lines up at 128.21, the 23.6% level, with a drop below that aiming for rising trend line support at 125.89.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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