Forex Technical Update
- The EUR/USD has been in pretty much a free fall after break below 1.40.
- To start this week, the market pushed i lower with a gap.
- In the European session to start the week of 9/11, it finally found support at 1.35 as the market is attempting to close the opening gap.
- Looking at the 4H chart, we see that the gap is about to close and the RSI is about to rise back up from the oversold area.
- If we take the swing from 1.4550 down to 1.35, a 23.6% retracement targets 1.3745.
- If the market can break above 1.3650 in the Monday US session, there is a chance for at least this correction.
- After such a sharp decline, we probably should not expect a correction higher than the 38.2% retracement level at 1.39. Therefore, the targets for the current rally if it goes above 1.3650, are 1.3745, and 1.39.
- The daily chart shows the market just above the 1.3450-1.3460 pivot.
- Below this and the 1.34 psychological support,the market opens up the 1.29-1.30 support zone. (1.29 is the 2011 low). While the near to short-term projection is a corrective rally to 1.3745, with possibility of extending to 1.39, the medium term outlook remains bearish towards 1.30, pending on a push below 1.34.
Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist