Forex Technical Update
EUR/USD 1H Chart 8/13/2012 9:18AM EDT
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.
EUR/USD day Chart 8/13/2012 9:20AM EDT
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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