Forex Technical Update

Previous: EUR/USD Extends Consolidation Rally; Has Upside Risk to 1.33 in Triangle Scenario (4/12)

 

EUR/USD

EUR/USD

The EUR/USD rally took a breather over the 4/13 Asian-European session after it cracked above the 1.32 handle. The 1H chart shows that is dipped to 1.3140. 1.3140-1.3155 was a resistance zone from 4/9 to 4/12. If it can hold as support, we have additional confirmation of upside risk. Other clues include the RSI holding above 40, and preferably push above 70 again, or the bullish momentum would appear weak, and still corrective (which could still be the case for in a bull run toward 1.33). Before 1.33, we have the 1.3250 pivot to monitor.

A break below 1.31 would probably also break below the current consolidation trendline support and reopen the bearish outlook.

EUR/USD

The daily chart shows a triangle scenario, which has upside to 1.33, and maybe even a little higher like 1.3330. There was a double top that had support at 1.3250, so this can be a pivot to act as resistance and deserves our attention. If it does indeed impede the rally toward 1.33, we can anticipate an eventual break of the triangle to the downside. But for now, triangle support is near 1.3050.

Join the Market Intelligence Briefings to get fundamental analysis, technical setups, trade plan assessments for EUR/USD, and other currency pairs.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of 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.