Forex Technical Update
The EUR/USD has broken above 1.32, but has so far failed to sustain that upside push. The 1H RSI reading tagged 70, but then failed to stay above 40, showing a lacking of follow-through momentum. To start the 4/23 US trading session, theEUR/USD has retreated to 1.3120, testing the 200-hour simple moving average. This is also the area of a rising trendline, going back to the low from the previous week just under 1.30.
With risk aversion showing, the USD might strengthen, even if its within the short-term, the downside risk is to 1.30 if the1.31 level gets cleared. Still, in the medium term, the market is directionless unless we can either break above 1.33 (triangleresistance; refer to previous update), or below 1.2970. And if the market can hold above 1.31 in the 4/23 US trading session, it is a sign that bulls are still in charge, and the 1.33 level is still in sight.
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.