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Dec 21, 2014

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Home » Featured » EUR/USD in Range Breakout Towards the 2012 High and Beyond

EUR/USD in Range Breakout Towards the 2012 High and Beyond

Forex Technical Update

EUR/USD 4H chart 1/25/2013 7:35AM EST

EUR/USD 1/25/2013 4H chart

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

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