Forex Technical Update

Previous: EUR/USD Sets Post-FOMC-Reaction Range Between 1.2635 and 1.2740 (6/20)

EUR/USD 1H Chart 9:45AM EDT 6/21/2012

EUR/USD

The EUR/USD is pushing lower after the stock market opened up in the 6/21 US session (9:30AM EDT). It broke below the 1.2635 low established after the FOMC statement. Also the RSI in the 1H chart is falling below 40, a sign that the bullish momentum established this week is lost.

Still there is just a bit more room to the downside before we can call the market topping.

First of all there are some support factors near 1.26. We have the 200-hour simple moving average and a rising trendline for June's correction channel. A break below this with the RSI dipping below 30, are the first signs we have completed June's correction rally.

Then if the market falls below the 1.2550 level, EUR/USD would have cleared this week's low to form a double top. This opens up June's low of 1.2285-1.23.

EUR/USD

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of 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.