Strategy: Flat

Prices are testing below support at 1.0217, the 23.6% Fibonacci retracement. Negative RSI divergence warns of ebbing upside momentum and argues for a bearish scenario. A break downward exposes the 38.2% level at 1.0140, a barrier reinforced by a rising trend line set from mid-January. Trend line resistance is at 1.0285, with a reversal above that targeting the March 1 high at 1.0341. Risk/reward considerations argue against entering a trade at current levels and we will stand asidefor now.

Daily Chart - Created Using FXCM Marketscope 2.0

Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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