EUR/USD 1H Chart 9/21/2012 9:13AM EDT
Bullish Bias: The EUR/USD quickly invalidated the bearish signs from earlier this week. The 1H chart shows the market pushing sharply above a declining trendline. The RSI pushed above 60, showing loss of the short-term bearish momentum. The market is oscillating above and below the 1.30 level as we get into the 9/21 US session. There is a bit of a bullish bias based on 1) the strength of the 1H bullish candles relative to the bearish candles.
2) Another sign of bullish bias is that the 4H RSI held above 40 after tagging 70, which reflects maintenance of bullish momentum. If the RSI pushes above 60, it is likely the market is in bullish continuation. Otherwise, if the RSI holds under 60, the EUR/USD is still in consolidation mode.
1.3085 pivot: The market seems to be focused on the upside early 9/21 US trading session, respecting a near-term rising trendline. The next S/R pivot is at 1.3085. It was support earlier in the week for a double bottom, and then treated as resistance after a pullback, which was then followed by a bearish swing.
EUR/USD 4H Chart 9/21/2012 9:15AM EDT