Forex Technical Update

Previous: EUR/USD Testing 1.23-1.2330 Resistance Area (7/31)

EUR/USD 1H Chart 8/1/2012 7:15AM EDT

EUR/USD 8/1/2012 1H chart

The EUR/USD continues to knock at the 1.2330 level, at one point cracking it during the 8/1 European session. The 1H chart shows this crack, but the close of these hourly bars are all below the key resistance pivot. We saw in the 1H chart that a swing projection targets the 1.2175 (61.8% retracement) level, but more conservatively the 1.22 handle, where the 200-hour SMA reside.

A push through 1.2330 opens up the 1.2390-1.24 area. The daily chart shows that a declining trendline also resides around 1.24, so a break above that can be telling of bullish take-over at least in the short to medium term.

A break above 1.2405 first opens up the 1.2593 level. The daily chart shows this to be the 38.2% retracement of the 1.3486 to 1.2040 swing.

EUR/USD 8/1/2012 Daily Chart

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.

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.