Forex Technical Update

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EUR/USD Chart 1H 6/11/2012 6:29AM EDT

EUR/GBP

The EUR/GBP started the week popping above the June high at 0.8140. However, the 6/11 Asian-European session has reversed this initial pop falling from about 0.8153 and fell back to near 0.8080.

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.

The upside for a continuing correction rally scenario is limited to 0.82-0.8220 pivot area and likely a declining trendline.

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).

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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