Forex Technical Update
Possible Topping? After the break below 1.38 in the first global session of the week, Tuesday's Asian session showed respect of a new resistance pivot at 1.3785. The support of the consolidation is at 1.3730. As the market breaks through this pivot, the market is suggesting further bearish intent. The near-term target below 1.3730 is 1.37, a psychological support, but the pivot is seen in the 1.3680-1.3685 area.
Note that this will also be the 200-period simply moving average for the 4H chart. Below this, the next zone of possible support is in the the 1.3520-1.3560 area, which contains the 50% retracement of the rally from 1.3150 to 1.3911. A pullback that fails to break back above 1.3685 (or maybe even under 1.37) can help confirm the bearish outlook.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.