EUR/USD 4H Chart 11/23/2012 9:20AM EST
Breakout Extension: Following yesterday’s update monitoring a break of a trendline and resistance pivot toward the 50% retracement, 1.29 handle. Today, as we get into the Friday (11/23) US session, the EUR/USD continues above 1.29. The 4H RSI also pushed above 70, showing bullish momentum. The pace of the rally has cranked a couple of notch higher since last week. You can see price action above projected channel resistance.
61.8% Retracement, resistance: Above 1.29, the 1.2956 level is the near-term resistance factor as it is 61.8% retracement. Above this level, the next key challenge to the bull run is a resistance pivot area roughly between 1.2995 and 1.3020. Clearing this resistance takes the EUR/USD to another level of bullish outlook, but first with focus on the 1.3138 and 1.3170 resistance pivots.
Breakdown: At this point, only a return below 1.2877 should challenge the bullish outlook. It will probably require a clear break below 1.28 however to return to the bearish outlook.
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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