Forex Technical Update
EUR/USD 1H Chart 7/12/2012 6:38AM EDT
The EUR/USD is breaking below the 1.22 level ahead of the 7/12 US session, continuing a bearish swing that started late June, early July. This is continuing a breakaway from June's corrective rally back into the bearish mode that started earlier in the year in February.
The 1H RSI shows persistent bearish momentum with the reading holding below 60 after dipping below 30 .
The daily RSI reading is showing similar bearish momentum building in a larger degree.
EUR/USD continues to hold the bearish outlook toward the 2010 low at about 1.19. We should also expect the 1.20 level to be a psychological barrier. (Refer to the weekly chart below the daily chart)
At this point, this bearish outlook should be valid unless a pullback pushes above 1.24, in which case we can expect a significant period of consolidation, and unclear or sideways direction. Only a break above 1.30 should bring up the bullish outlook in this degree.
EUR/USD Daily Chart 7/12/2012 6:39AM EDT
EUR/USD Weekly Chart 7/12/2012 6:49AM 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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