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Prices remain locked in a choppy range below resistance at 1.1155, the 23.6% Fibonacci expansion. A break higher on a daily closing basis exposes recent swing highs in the 1.1194-1.1223 area, followed by the 38.2% level at 1.1307. Near-term support is in the 1.1053-61 region, defined by the February 25 low and the 14.6% Fib. A reversal beneath this barrier exposes the February 19 low at 1.0909.
A long position at current levels is premature absent a confirmation on a break above resistance. Meanwhile, a short trade looks unattractive from a risk/reward perspective with the pair sitting squarely at near-term support. We will opt to remain flat for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com