EUR/USD 4H Chart 11/2/2012 9:45AM EDT
Bearish Momentum: The 4H EUR/USD chart shows bearish momentum as the RSI kisses 30 fails to break above 60 and slides back under 40. This was the case already heading into the NFP release today (11/2) for October, which came in at 171K, beating the forecast of 123K. USD strength is beating the pressure it normally has in risk-on trading. Instead it is firming further against the EUR.
October low, support: As the day and week winds down, the EUR/USD is trading around the October lows just above 1.28. If the market remains in consolidation dynamic as it has since September, than there should be support in this area above 1.28.
Key Support: Price is closing in on the 200-day SMA near 1.2840. When you look at the daily chart, the 1.28 is also a range support. A break below this introduces a bearish outlook. For me, it needs to clear the 1.2750 pivot to really open up the bearish outlook which exposes the 1.2042 low in July.
EUR/USD Daily Chart 11/2/2012 9:50AM EDT
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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