Forex Technical Update
August 17, 2010
- 1H: Yesterday’s EUR/USD update noted support at 1.2750. However the market was still declining in a channel. Today, the market broke out of that channel, and may be in for a correction rally. The near-term target is 1.2940, a swing projection that would complete a 3-wave rally. That could be an area of resistance. However, more significant resistance may lie further ahead closer to the 1.30 area. The 38.2% and 50% zone, and SMA 200 reside there.
- The RSI is rallying above 60, so momentum is showing readiness for at least a correction rally, after a bullish divergence.
- Another confirmation is the crossover of the SMA 50, and a test as support.
- The rally is materializing, and there should be resistance. The market’s reaction after testing resistance is going to give us clues to the intermediate term direction.
Fan Yang
Currency Analyst
Commodity Trading Advisor
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