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Prices continue to coil into a narrow range after settling a low beneath the 101.00 figure. Breaking above resistance at 102.84, the 23.6% Fibonacci expansion, exposes the 38.2% level at 104.14. Rising trend line support is at 101.76, followed by the February 17 low at 101.38 and the February 4 bottom at 100.75.
An increasingly constrained trading band offers few viable trading opportunities absent a defined breakout. Price action since the beginning of February may be tracing an Ascending Triangle, a pattern indicative of upward continuation, and we will wait on the sidelines until this is confirmed with a close above 102.84 to look for attractive long trade setups.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com