Previous: EUR/GBP Reverses Opening Pop; Trades at Short-term Trendline (6/11)

EUR/USD Chart 1H 6/13/2012 1:42PM EDT

The 6/13 session has been good to the euro, even as Spanish and Italian yields continue to reflect uncertainty in the eurozone. The market is rallying against a sharp dip from 0.8152 to 0.8010. During the 6/13 US session, the EUR/GBP is testing the 61.8% retracement level and a previous pivot from May 22, around the 0.81 handle. Note also that this is where the previously broken short-term support projects to. Can it hold as resistance?

The market continues to be choppy ahead of the Greek election, though the 6/14 Italian bond auction may also be a key risk event on the horizon.

There is still downside toward 0.80, which would test a consolidation support.

To the upside, if the market can not hold the market from clearing 0.81, we have the 0.8150 level, then the 0.82-0.8220 area as resistance. The latter also refers a declining trendline seen in the daily chart.

EUR/USD Daily Chart 6/13/2012 1:45PM EDT

Join the Market Intelligence Briefings to get fundamental analysis, technical setups, trade plan and management strategies for the EUR/GBP, and other currency pairs.

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