EUR/USD 1H chart 2/1/2013 7:30AM EST
Breakouts, EUR/USD: We saw breakouts in consolidations across the board in USD and JPY crosses. Here on FXTimes, I talked about EUR/USD and GBP/JPY. For example, during the 2/1 Asian session, EUR/USD extended above the recent short-term range seen in the 1H chart that was broken during the 1/31 US session, reaching 1.3675. This passed the conventional range breakout target of 1.3630-40. As we get ready for the 2/1 US session, we see the bulls retreat from 1.3675.
GBP/JPY: I also noted the GBP/JPY’s consolidation setup yesterday (1/31), waiting for a breakout. The break came to the upside, and extended throughout the rest of the 1/31 session into the 2/1 Asian session, but has stalled at 145.45 during the European session. Its come down almost 100 pips as we get ready for the US session. Again, this breakout extended pass our projection for the 1H consolidation range, but we also saw a break above 144.77 as a break in a larger degree, with a projection toward 150.40-150.50. We will probably need to wait until after the NFP to see if the market is still on its way to this more aggressive bullish outlook.
Momentum, NFP: In both EUR/USD and GBP/JPY, check the 1H RSI. These show bullish momentum as they have held above 40 and tagged 70. So if after the NFP, the RSI falls below 40, then we might consider some more correction against the bullish market. Otherwise, you might not want to fight this persistent trend.
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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