Forex Technical Update

EUR/USD 1H chart 1/17/2013 7:00AM EST

EUR/USD 1/17/2013 h1
(click for full view)

Breakout: The EUR/USD topped off to start the week, showed some further bearish inclination but ended up trading in a range under the topping structure. For a couple of sessions it traded choppily and roughly between 1.3250 and 1.3320. During the 1/17 European session, the market pushed the EUR/USD above this range, and back into the previous topping area a sign that bulls are still in charge of this market after not even a 38.2% retracement of January’s rally.

Momentum: The 1H RSI failed to hit 30, which reflected weak bearish momentum. A push back to 70 can revive bullish momentum. Meanwhile price action is focused toward the 1.34 level as we start the 1/17 US session. A hold above  1.3320 keeps the bullish bias for now, but continuation will require clearing above the 1.3403 high. Failing to push above 1.34 and falling below 1.33 will be a sign that bulls are exhausted, and the choppy consolidation continues with focus back toward the 1.3250, 38.2% retracement and possibly lower.

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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