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.

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.