Yesterday’s upside breakout from the descending triangle brought prices to 113.72 highs. Since then they have corrected and are currently falling. They may find support at the line at 113.35 but if they fall further they could reach 112.80 first or even as low as 112.40 where they will find support from the trendline up from the August ’10 lows. If they find support in the 113.30s or thereabouts they may have another rally higher to the original 114 target.
Analysis prepared by:
Joaquin Monfort
Forex4you analyst