Forex Technical Update
The EUR/USD continues to trade within a rising channel, respecting support again in the 11/8 European trading session, and heading into the US trading session. However as we see in the 1H chart - still no higher highs and therefore reflects a market in congestion, with no direction. Ability to create a higher high - above 1.3811-1.3815 - suggests not only respect of channel support, but intent to continue channeling upwards and extend the current correction period. This scenario, opens up the 1.3866 high, where the 200 simple moving average resides. Above that we can be extending the correction even further toward 1.3930 (50% retracement), then 1.40 near 61.8% retracement seen in the 4H chart.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources