Forex Technical Update
EUR/USD 4H Chart 11/20/2012 9:35AM EST
Resistance again: Following up with the latest update on EUR/USD, we saw the market respect the resistance and fall to the support/resistance pivot at 1.2740, where it found support in the early 11/21 European session. The 4H cahrt shows the pair rally sharply since then back to the 1.2830 area. The 1.2830-1.2843 area includes a falling trendline, the completion of a swing projection and Gartley pattern, and the 38.2% retreacement level. The RSI is also at 60, which would be resistance if the market holds onto the bearish momentum in this time-frame.
Will this resistance hold today? There doesn't seem to be much significant economic releases, except maybe some manufacturing data during the 11/22 European session. 11/22 is also a Holiday in the US (Thanksgiving).
Crossroad: In any case, the 4H chart basically shows a market trading between declining resistance and rising support, so a bearish target should be limited to the rising support for now, which is probably right near the session low of 1.2740. A break belo wthat can open up the 1.2660 as well as the next key support area around the 1.26 handle. A break to the upside for me requires a break above 1.2880 to introduce a bullish outlook.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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