EUR/USD 4H chart 1/25/2013 7:35AM EST
Consolidation Range: The EUR/USD market has been directionless for almost 2 weeks, but finally broke out of its consolidation range to the upside during the 1/25 European session. The 4H chart shows a strong push the range resistance at 1.3403, breaking in the direction of the trend. Note that in the 4H chart the RSI held above 40 during the consolidation, a sign of maintained bullish momentum, and is now tagging 70, confirming the bullish continuation momentum.
Bullish targets: The weekly chart shows a market that has been bullish since July, and has broken a key falling trendline. The RSI is breaking above 60, showing loss of the bearish momentum that established during the 2011-2012 bear run. As the current bull run continues, what are the next key resistance levels? For one, the 2012-high is just ahead around 1.3485.
The next interesting factor will be the 200-week SMA, which is currently at 1.3527. Between these two noted factors, is the 50% retracement at 1.3490, and finally a more aggressive target could be aronud the 61.8% retracement at 1.3832.
EUR/USD Weekly chart 1/25/2013
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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