EUR/USD Retesting Resistance Cluster
By Fan Yang | November 22, 2012 2:56 AM EST
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.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.