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