Forex Technical Update
The EUR/USD slipeed lower, below 1.36 during the 11/15 European session, but found support at 1.3511 heading into the US session. With better retail sales, risk-on became the theme in early US session trading, and the USD and JPY gains were pared. The EUR/USD is rallying, but far from turning things bullish outside of the very short-term time frame. We are looking at resistance at the 1.36 handle. Above that, we are looking at resistance at 1.3645-50% retracement at 1.3651. Clearing above 1.3650 would weaken the case for bearish outlook, and reflect sideways action, especially if the RSI reading in the 4H chart rallies back above 60, reflecting a loss of the preceding bearish momentum.
However, respect of the 1.36 - 1.3650 consolidation zone as resistance will continue the scope for further downside. In this scenario, the 1.3483 low and then the 1.3383 pivot and 78.6% retracement are next lower targets as well as possible support levels in the short-term. Further extension of the bearish outlook also opens up 1.3145.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources