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EUR/USD

The EUR/USD chart in the 1H time-frame shows a bullish market since tagging last week’s low. We basically have a consolidation range with lower support near 1.3030 (starting 1.3070) and higher resistance near 1.3230 (starting at 1.32). Our count for this consolidation has been a completed double 3, which suggested a bullish continuation to follow. A break above 1.3230 should confirm this scenario. Also, the 4H RSI reading breaking back above 60 reflects maintained bullish momentum. Let’s take a look at the daily chart for upside target/resistance levels. (It should also be noted that staying above 1.30 was a good sign for the bullish intent).

Above 1.3243 (38.2% retracement), we hae 50% at 1.3435. The more significant resistance area is above 1.36, from 1.3620-1.3650. This area contains the 61.8% retracement, a declinine trendline and the 200 day SMA. A break of 1.3650 will be a very key bullish signal. But with the Eurozone debt crisis will the market be able to do that? Not likely. We might be getting some optimism with today’s Greek deal mentioned in today’s IBTrade briefing session, but rumors and premature optimism is not sustainable. This begs to ask if the market can even break pass 1.3243 ahead of Thursday’s ECB meeting.

Make sure to stay on top of the developments in Greece and other risk events for the Forex markets by joining live briefings every morning at 8AM EST. The 2/8 briefing will focus on the technical setups, trade planning, and risk management for the majors in cluding EUR/USD. To gain free access to these sessions, register at here at IBTrade.

Fan Yang CMT is a forex trader, analyst, educator for IBTrade; and main contributor 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.