Forex Technical Update
EUR/USD Chart 1H 6/11/2012 6:29AM EDT
If price action can stay above the 0.8070-0.8080 area, we still have a bullish, though choppy outlook for the week. The price would still be above the previous swing lows, and the 200-hour simple moving average (SMA). Also, the 1H RSI reading staying above 40 would help retain the bullish momentum.
A break below 0.8070, with the RSI pushing below 40 and even 30 however, should open up the 0.8050 consolidation low. Then, a break below 0.80 would suggest a completion of a short to medium term consolidation and open up 0.79 and even 0.77 (2008 consolidation low).
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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