Forex Technical Update
The EUR/USD's price action this week has so far struck a consolidation tone, failing to push below 1.3030. As the market gears up for the 4/11 US trading session, the EUR/USD is approaching a resistance pivot around 1.3160. Also note that this is in confluence with the 38.2% retracement (1.3162) of the 1.3377 to 1.3029 swing, as well as the resistance of the consolidation channel. Above this pivot the 200-hour simple moving average resides at about 1.3175.
While this is the first area we can expect some resistance, a break above does not necessarily reflect a bullish market. The 4H chart shows resistance factors from 1.32 to 1.3250, starting with the 50% retracement level at 1.32, up to the 61.8% retracement level and previous double top support pivot (to be tested as resistance pivot) in the 1.3244-1.3250 area.
If the market can make keep price under 1.3250, and RSI under 60, the bearish bias still maintains. The bearish outlook so far is limited to the 1.2970-1.30 support zone. A break below this opens up further risk to the downside.
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.