EUR/USD Technical Analysis– Prices turned lower as expected after putting in a Bearish Engulfing candlestick pattern, edging past rising trend line support set from the July 24 2012 low to challenge the 50% Fibonacci retracement at 1.3185. This barrier is closely followed by a falling channel bottom (1.3119), a horizontal pivot in play since mid-September (1.3129), and the 61.8% Fib at 1.3061. Near-term resistance is at 1.3308, the 38.2% retracement.

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

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