Prices are pulling back from resistance at 106.79, the 61.8%Fibonacci expansion. Initial support lines up at 105.54, the 50% level. This barrier is reinforced by a previously broken rising channel top at 105.31, with a drop below this exposing the 38.2% Fib at 104.33. Alternatively, a reversal above resistance targets the 76.4% expansion at 108.32.

Daily Chart - Created Using FXCM Marketscope 2.0

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

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