EUR/USD 4H chart 2/12/2013 8:43AM EST
Falling channel: The EUR/USD can be seen in a falling channel since the beginning of February when it fell from the 1.37 handle. The 4H chart shows this structure as well as the RSI tagging 30, which reflects bearish momentum in this time-frame. The week started with a range between 1.3430 and 1.3352 and the 2/12 European session pushed price above this range. As we enter the 2/12 US session, price is testing the falling channel resistance.
Breakout scenario: Note that as price nears 1.3475-80 area, it encounters not only the channel resistance but a previous support/resistance pivot. A break above this will be needed to clear the channel and bring about some bullish outlook, especially if it can extend above the 1.35 psychological handle. This can put pressure on the 1.36 and 1.37 clips, which were also resistance pivots before.
If the RSI pushes above 60, the bearish momentum is lost, and the correction is seen as flat, OR completed. A push above 1.37 confirms the completed correction and usher in bullish continuation with 61.8% retracement of 2011-2012 bear trend at 1.3827, which is also a previous support pivot in July 2011.
Failure: Failure to the upside (such as failure to push above 1.35 with the 4H RSI holding below 60), and a return below 1.3350 has room towards 1.3255, support from a previous consolidation in January.
The information used by ForexMinute.com including any opinions, charts, prices, news, data, Buy/Sell signals, research and analysis is provided as general market commentary and does not constitute any investment advice. ForexMnute.com is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly or indirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite. Do not invest more money than you can afford to lose.
Note that the high level of leverage in forex trading may work against you as well as for you. Please seek advice of an independent financial advisor if you are not fully aware about the risks associated with foreign exchange trading. Forex trading on margin involves considerable exposure to high risk, and may not be suitable for all investors. Global Invest does not endorse any companies, products or services which are represented on Forexminute.com The information on this website is subject to change without notice.
Recommended Content
Editors’ Picks
Australian Dollar maintains ground amid subdued US Dollar, US Nonfarm Payrolls awaited
The Australian Dollar rises on hawkish sentiment surrounding the RBA prolonging higher interest rates. Australia’s central bank is expected to maintain its current rate at 4.35% until the end of September. US Nonfarm Payrolls is expected to print a reading of 243K for April, compared to 303K prior.
EUR/USD: Optimism prevailed, hurting US Dollar demand
The EUR/USD pair advanced for a third consecutive week, accumulating a measly 160 pips in that period. The pair trades around 1.0760 ahead of the close after tumultuous headlines failed to trigger a clear directional path.
Gold bears take action on mixed signals from US economy
Gold price fell more than 2% for the second consecutive week, erased a small portion of its losses but finally came under renewed bearish pressure. The near-term technical outlook points to a loss of bullish momentum as the market focus shifts to Fedspeak.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.