Forex Technical Update
Despite breaking below some key supports at 1.3020 and the psychological pivot at 1.30, the EUR/USD is now looking at a bullish continuation scenario. The bounce from 1.2974 was very sharp in the 2/16 US session, and has followed through in the Asian and European session. As we gear up for the last session of this week (2/17 US), the EUR/USD's rally is up against a counter-trend trendline. There are some other resistance factors here in that we are near 61.8% retracement at 1.3188 and the RSI is nearing 60 after it has kissed 30. Resistance here and a push back below 1.31 should be a sign that the bearish outlook is still in play. But if the market pushes through 1.32, and the RSI pops above 60, we are more likely either in further bullish outlook as part of a wide consolidation (that will find resistance again near the 1.3320 high), or a bullish continuing looking toward 1.35 if the 1.3320 cannot hold.
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Fan Yang CMT is a forex trader, analyst, educator for IBTrade; and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.