There are some notable features on this chart. One is the fact that the pair broke above a long-term trend line. This is positive. It's also worth noting that 105.23 could have been the completion of an ABC pattern and the pair is beginning an impulsive move upwards. Lovely, if true.
Other notable features, though, are darker. RSI is sluggish. The 10-EMA (currently 113.32) seems intent on holding the pair down. February formed a doji candle that could become part of an evening star pattern if March turns out to be a bearish candle that closes well into January's bullish candle. It's likely these three are signaling a correction of some degree. It's also possible the pair is in a bear flag with the upper boundary at 116.14 and the lower one at 107.79).
Monthly support is at 112.25, 110.77, 108.28, 107.79, 106.83 and 105.23. Monthly resistance is at 113.32, 114.24, 115.69 (Oct. high), and 116.14 (the upper boundary of the bear flag).
Here's the monthly chart:
© Dianne Fecteau, 2011. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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