Prices are retesting resistance at 1.5911, the 38.2% Fibonacci retracement, a barrier reinforced by the underside of a rising trend line support set from the June 1 low. A break above that exposes the 1.60 figure and a falling channel top at 1.6081. Initial channel support is at 1.5825, with a break below that targeting the 50% level at 1.5788. A short entry order set at 1.5850 was triggered last week and the trade remains active.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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