Forex Technical Update

Previous: EUR/USD Another Session, Another Low (8/10)

EUR/USD 1H Chart 8/13/2012 9:18AM EDT

"EUR/USD

The EUR/USD reached 1.2240, the 2nd target mentioned in last week's update, before finding support. After some sideways trading, the EUR/USD rallied heading into 8/13 US trading, pushing above a near-term declining trendline seen in the 1H chart. Also, the 1H RSI pushed above 60 and tagged 70. These signs reflect a market that has not picked a direction as it tests lower range of last week's range roughly between 1.2442 and 1.2340.

Still, if the market can push back below 1.23 from this point, I think we can take that as a sign of respect to last week's range, and therefore bearish take-over in the short-term. Otherwise, staying above 1.23, the market has upside to test the upper zone of last week's range and a declining trendline seen in the Daily chart.

You can also see in the daily chart that the market is trading toward the crossroad between resistance and support trendlines, while the overall mode is still bearish.

EUR/USD day Chart 8/13/2012 9:20AM EDT

"EUR/USD

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.