Previous: EUR/USD to Challenge Support Factors Around 1.26 (6/21)

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.

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.