Forex Technical Update
Previous: EUR/USD Trading Above 1.27...(6/17)
EUR/USD Daily Chart 6:40AM EDT 6/15/2012
The EUR/USD is mirroring it action that started the previous week (6/11). It was the Spanish bailout that gave the EUR/USD a jolt to 1.2666, followed immediately by a fade in risk. The decline went to 1.2440 before a risk-on rally whipped the EUR/USD back up.
This week, the Greek election pushed pair up to 1.2745 before it was again immediately faded. As we get into the 6/18 US session, the pair sits around the 1.26 handle.
Below this psychological barrier, the EUR/USD eyes June's correction trendline. It should be noted that in June, this rising trendline has been adjusted for a 3rd time. If 3rd time is the charm, a break below this TL, near 1.2520, should be a signal of a bearish continuation, with the first key level at 1.24-1.2410 area, before the 1.2285-1.23 June lows.
There is a pivot area in the 1.2530-1.2540 area. If the market can hold above these levels, we still have upside risk toward the next resistance pivot at 1.2820.
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.
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