Chart of the day: EUR/USD

Blake Morrow Forex Analytix

Trust this breakout?

The EUR/USD broke out over the weekend and for Easter Monday hit a new trend high. However, this move today was not as convincing as previous moves. Let me explain.

The move higher out of the bullish consolidation the last two weeks let to a new trend high, and a move beyond the 127% extension. This was not accompanied by a new high in RSI, or “relative strength.” Technically, this is a concern.

At this point the move doesn’t look too exhausted, but the RSI lack of upside is a risk for bulls. Should the EUR/USD make it to the 161% Fibonacci extension at 1.1873, that could be the last leg higher of the rally in the very near term.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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