Forex Technical Update

Previous: EUR/USD Breaks Above Falling Trendline Toward 1.29, 50% Retracement (11/22)

EUR/USD 4H Chart 11/23/2012 9:20AM EST

EUR/USD 11/23/2012 4H chart

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.

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.

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