EUR/USD 4H Chart 3:25PM EDT 6/21/2012
The EUR/USD had a very sharp slide today, falling from 1.27 in the European session, through the 1.2635 support pivot from the 6/20 session, then below 1.26 and June’s rising trendline, and for an encore in late 6/21 US session, it is pushing below 1.2550.
The 4H chart shows this break to be very sharp, pushing the RSI below 40, reflecting a loss of bullish momentum established during June’s corrective rally.
The break below 1.2550 completes a double top. The tops were at 1.2740 area. This break first opens up the 1.2430 pivot area before the 1.2285-1.23 June lows.
Technical clues are coming together to signal a bearish continuation, at least in the short-term. A pullback that fails to break back above 1.2635, preferably staying under 1.26, would be another additional sign of bearish continuation.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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