Andrei Pehar, Chief currency Strategist, fxKnight.com

We've got a great Fibonacci pattern here, with divergence as well.  The first time we bounced up the resistance held.  Price touched the envelope and bounced up again after hitting the 127% extension at 1.0166 as well.

We are once again moving up.   The 21 EMA is on it's way to meet us at the 0% Fib at 1.0782 where a third divergence forming as well.

What happens next will depend on whether this level holds as resistance or breaks and becomes our new support.  If it holds as resistance, we could possibly move back down to 1.0372, and 1.0166 after that.  The ultimate downside of this Fib is at 0.9911 - but that's an extremely long-term scenario, if it comes to pass.

If the 1.0782 instead holds as support, we'll likely range for a while between 1.0782 and 1.1115.  If we break above 1.1115 , then we will likely go to 1.1653 - with 1.1320 as resistance along the way.

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