Writing in this week's Fibonacci Weekly report, we noted that:
"Current positioning suggests a Rising Wedge formation formed since the breakdown of the long-term bullish run at the initial 1.60 test. This pattern suggests that bullish momentum is contracting and favors a bearish reversal. We will remain flat for the time being as we wait for a downside break to validate this scenario. A move lower sees initial support at 1.5757, the 38.2% Fib retracement level."
The pair has now broken below the wedge, stopping right at the 38.2% level. A break here sees the next significant support at the intersection of the 61.8% fib and the long-term bullish trend line near 1.5580-90.
The complete Fibonacci Weekly can be found here:
http://www.dailyfx.com/story/special...705006837.html
