EUR/USD 1H Chart 7/19/2012 11:45AM EDT
The EUR/USD continues to consolidate in a slightly rising channel, or rising wedge. The 1H chart shows the RSI mostly stuck between 40 and 60, but it has kissed 30 recently, so there is just a slight bearish bias in momentum despite the fact the EUR/USD has been making higher lows and slightly higher high during the 7/19 session.
Still this high is below last week’s 1.2330 high. A break above this should introduce the reversal scenario in the short-term, exposing the 1.24 handle.
However, if the the market can hold below 1.2330 and push below 1.22, it will finally break the rising trendline for the week, and create a lower low week. This can be be a signal of bearish continuation.
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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