Forex Technical Update
EUR/USD 1H Chart 9/17/2012 9:45AM EDT
The EUR/USD consolidated after finding a high on Friday at 1.3170. Since then the pair has been in a couple of very minor down swings to 1.3085. This very brief consolidation period was broken at the start of the 9/17 US trading session. Note the RSI held above a recently common low of 50, and is pushing back above 60, a sign of very persistent bullish momentum even in the near-term. Price action is testing Friday's high.
A break above 1.3170 continues the focus on the 1.3270 pivot, and declining trendline from the 2011 high of 1.4940.
Consolidation scenario: IF the market however is able to throwback under an intra-session pivot at 1.3120, then there is likely more consolidation ahead. In fact the market could be setting up a brief double top in this consolidation scenario, where the focus will be back to the 1.30 handle, especially if the 1H RSI falls below 40.
EUR/USD 15-min Chart 9/17/2012 9:50AM EDT
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.