Forex Technical Update
The EUR/USD has been in a very persistent rally from the low near 1.3150 to 1.37. In the Tuesday European session, we saw 1.37 hold as resistance. As we get the US session started, the market seems to have taken a bearish tone at least in the short-term. However, as you can see in the 4H chart, the bearish attempts have been so far relatively weak. We can also see that there will be an important support at 1.3520.
The market has been reacting at this pivot for both support and resistance. A break below will suggest a test of 1.3450, below which, we have a test of the 1.3370-1.3380 area. Below 1.3370, we are likely developing a range with resistance near 1.37, and support near 1.3150, but with some bearish bias. In this case, the 1.3150 level will become the short-term target.
If the market is instead breaks above 1.37 in the US session, we can see a rally toward the 1.3790-1.38 area, a previous resistance pivot, and the 200-period simple moving average seen in the 4H EUR/USD chart.