To receive Ilya's analysis directly via email, please SIGN UP HERE
Prices recoiled higher from support at 101.38, the February 17 low. Near-term resistance is at 102.84, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 104.14. Alternatively, a reversal beneath support aims for the February 4 low at 100.75.
Risk/reward considerations argue against taking a trade with prices so close to relevant resistance. The pair’s strong correlation with the S&P 500 hints a turn lower may be ahead as the benchmark equity index shows signs of vulnerability but confirmation remains absent. We will remain on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com