This Week: EUR/USD: Risk Events July 2 - July 6 (7/1)
EUR/USD 1H Chart 7/3/2012 11:05AM EDT
The 1.2550 level is indeed provide some short-term support. It was the 1.2565 level during the 7/2 session, and 1.2553 level as support pivot during the 7/3 US trading session. The rally from 1.2550-1.26 during the 10:00AM EDT hour was supported by risk-on trading on the back of a positive US Factory Orders release.
The previous EUR/USD update noted that this 1.2540-1.2550 area contained some support factors, and that the RSI tends to stay above 40 if the market is still bullish from Friday's swing. So far, price action and momentum are still within the bullish scenario after sliding from 1.2690 to 1.2553.
But ahead of the key event risks on Thursday and Friday, the bullish outlook should probably be limited to a short-term resistance pivot of 1.2665, then the 1.2690-1.27 area.
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.
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